SoftBank weighs $18 billion Allied Universal acquisition to expand robotics
Key Facts
SoftBank Group is considering acquiring security services company Allied Universal in a potential deal worth up to $18 billion, Reuters reported, citing a person familiar with the matter. The move is linked to the group's efforts to expand the use of AI-powered robots and support the infrastructure needed for the technology. Bloomberg first reported the deliberations over the potential acquisition. SoftBank declined to comment, while Allied Universal did not immediately respond to Reuters' request for comment on the talks. Investing.com, citing The Wall Street Journal, said the potential valuation excludes Allied Universal's debt. The company has annual revenue of about $23 billion, Investing.com reported, citing the company's website, indicating the scale of the business under discussion.
According to the Reuters report, SoftBank would seek to replace some employees with robots in specific security tasks in the future if the acquisition goes through. The plan links artificial intelligence with security work in the field by deploying robots in some tasks performed by the target company's employees. The potential move places guarding services among the applications of technology in which the group is investing, alongside its investments in AI infrastructure components. In its announced strategy, SoftBank identified AI chips, robotics, data centers and energy as investment areas, according to a group statement. SoftBank Chairman and Chief Executive Masayoshi Son described the direction in the statement, saying: "SoftBank's next frontier is physical AI."
The group previously agreed to buy ABB's robotics business for a total purchase price of $5.375 billion, according to SoftBank's announcement of the agreement. That agreement adds a robotics manufacturing business to the group's stated push into physical AI, which Son described as its next frontier. In Allied Universal's case, the application reported by Reuters involves deploying robots to perform specific security tasks within the target services company. The two moves reflect SoftBank's interest in robotics, from buying a specialist business to exploring the acquisition of a company that could use robots in its operations. The expansion is part of a strategy that also includes investment in chips, data centers and energy needed for AI technology, according to the areas announced by the group.
In another part of its AI investments, SoftBank announced that its total cumulative investment in OpenAI had reached about $64.6 billion. The group said its stake in the company had reached nearly 13% after completing the final installment of its additional investment, according to its statement on the completion of that installment. SoftBank financed the installment with proceeds from foreign-currency bond issuance, it said in the same statement on funding the investment. The group had set the terms for foreign-currency bonds totaling approximately $11.1 billion, according to its announcement of the issuance terms. These transactions place bond financing alongside the investment in the AI company and the agreement to buy the robotics business among the capital moves announced by SoftBank.
In trading, a report published by Investing.com on Tuesday said SoftBank shares fell 6.0% to trade at 4554 yen per share. The price was recorded during the session as the group's acquisition moves and AI investments drew attention. Those moves include the cumulative investment in OpenAI, whose size the group announced after completing the final installment of its additional investment. They also include the agreement to buy ABB's robotics business, for which SoftBank specified a total purchase price in its announcement of the agreement. The Allied Universal talks concern expanding the use of robots to some security tasks, according to the plan Reuters reported, citing the person familiar with the deliberations.
The deliberations over Allied Universal remain preliminary, according to Reuters' report on the acquisition SoftBank is considering. No final decisions have been made on the deal, including the potential purchase price, according to the same report. For the agreement to buy ABB's robotics business, SoftBank had said in its announcement that it expected the acquisition to close between mid- and late 2026. That remains the target closing period the group set when it announced the agreement to buy the business. As for its next financial reporting date, SoftBank plans to announce results for the second quarter of its fiscal year 2026 on November 10, 2026, according to the group's investor relations calendar.