MENLO PARK, Calif. - Investment firm KKR & Co. (NYSE: NYSE:KKR) has reached a definitive agreement to acquire the End-User Computing Division (EUC Division) from Broadcom Inc. (NASDAQ: NASDAQ:AVGO) for approximately $4 billion. The EUC Division, previously a part of VMware (NYSE:VMW) before Broadcom's acquisition, will operate as an independent entity upon completion of the deal, which is anticipated to close in 2024, subject to regulatory approvals.
The EUC Division specializes in digital workspace solutions, including Horizon, a desktop and application virtualization platform, and Workspace ONE, a unified endpoint management platform. These products are designed to securely manage and deliver applications, desktops, and data across various devices and platforms.
KKR plans to grow the EUC Division by enhancing product innovation, customer service, and strategic partnerships. The investment will also support an expansion in research and development, sales, and customer success resources. Shankar Iyer will continue to lead the division as Senior Vice President and General Manager.
The transaction is part of KKR's strategy to invest in companies with potential for growth and to foster a strong ownership culture by implementing its broad-based employee ownership program. This approach has been a hallmark of KKR's investment philosophy, aiming to align employee interests with business success.
Evercore, Deutsche Bank Securities Inc., and Jefferies LLC are serving as financial advisors to KKR, with Simpson Thacher & Bartlett LLP as legal advisor. Citi is acting as the exclusive financial advisor to Broadcom.
KKR's acquisition is primarily funded through its North America Fund XIII. The firm is known for its diversified investment portfolio and alternative asset management services, including private equity, credit, and real assets, as well as capital markets and insurance solutions.
This development marks a significant transition for the EUC Division, positioning it to focus exclusively on its suite of digital workspace solutions and to capitalize on the evolving needs of the modern workplace.
The information reported here is based on a press release statement.
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