Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Exclusive-Broadcom nears $3.8 billion sale of remote access unit to KKR

Published 02/24/2024, 04:54 PM
Updated 02/24/2024, 05:26 PM
© Reuters. FILE PHOTO: A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

By Milana Vinn

(Reuters) -Chipmaker Broadcom (NASDAQ:AVGO) is nearing a $3.8 billion deal to sell its business that allows users to access desktops and applications from any device to private equity firm KKR, people familiar with the matter said on Saturday.

The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the company's portfolio after completing its $69 billion takeover of software maker VMware (NYSE:VMW) in November.

KKR prevailed in the auction for the end-user computing (EUC) unit over other private equity firms, including EQT (ST:EQTAB), the sources said.

The deal could be announced as early as Monday, the sources added, requesting anonymity because the matter is confidential

KKR declined to comment. Broadcom and EQT did not immediately respond to requests for comment.

Broadcom said in December it would seek to divest its end-user computing unit. It is separately attempting to shed VMware's security software business Carbon Black.

KKR is no stranger to dealmaking in the sector.

In 2018, it purchased U.S. business software company BMC for $8.5 billion and two years later it combined BMC with Compuware, a company it acquired from buyout firm Thoma Bravo.

© Reuters. FILE PHOTO: A smartphone with a displayed Broadcom logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

In 2021, KKR acquired information services technology provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners for about $1.7 billion.

Evercore, Deutsche Bank and Jefferies are advising KKR on the transaction, while Citigroup is advising Broadcom, the sources said. UBS Group, Jefferies and KKR's capital market unit are providing debt financing for the deal.

Latest comments

Shars go up when deal done?
Certainly tomorrow as deal was announced. carbon black should also be a big $ amount. The problem is how much the loss of core expertise has on their integrated offerings in the future.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.