Updated February 25th, 2024 at 10:45 IST

Broadcom to close $3.8 billion deal with KKR to sell its EUC business

Sources indicate that KKR won the auction for Broadcom's EUC unit, outbidding other contenders, including EQT.

Reported by: Business Desk
Broadcom | Image:Vecteezy.com
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Broadcom-KKR deal: Broadcom, a leading chipmaker, is reportedly nearing a deal worth $3.8 billion to sell its end-user computing (EUC) business to private equity firm KKR, according to sources familiar with the matter. This move is seen as part of Broadcom CEO Hock Tan's strategy to streamline the company's portfolio following its recent $69 billion acquisition of software maker VMware in November.

Sources indicate that KKR won the auction for Broadcom's EUC unit, outbidding other contenders, including EQT. The deal, which could be officially announced as early as Monday, remains confidential, with both KKR and Broadcom declining to comment on the matter.

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Broadcom had previously announced its intention to divest its end-user computing unit in December, as part of its broader restructuring efforts. Additionally, the company is also looking to offload VMware's security software business, Carbon Black.

KKR's involvement in the technology sector is well-established, with notable acquisitions such as US business software company BMC for $8.5 billion in 2018, and the subsequent merger of BMC with Compuware. In 2021, KKR acquired information services technology provider Ensono for approximately $1.7 billion.

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The transaction is being advised by Evercore, Deutsche Bank, and Jefferies on behalf of KKR, while Citigroup is advising Broadcom. Debt financing for the deal is being provided by UBS Group, Jefferies, and KKR's capital market unit.

(With Reuters inputs)

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Published February 25th, 2024 at 10:45 IST