Exclusive-Broadcom to sell $3.8 billion remote access equipment to KKR By Reuters

© Reuters. FILE PHOTO: In this picture taken March 6, 2023, a smartphone displaying the Broadcom logo is placed on a computer motherboard. REUTERS/Dado Ruvic/Illustration/File Photo

City of Milan wins

(Reuters) – Chipmaker Broadcom (NASDAQ:) is nearing a $3.8 billion deal to sell its business, which allows users to access desktops and applications from any device, to private equity firm KKR, the issue said. A source familiar with the matter said Saturday.

The deal represents Broadcom CEO Hock Tan’s efforts to streamline the company’s portfolio after completing the $69 billion acquisition of software maker VMware (NYSE:) last November.

KKR beat other private equity firms including EQT (ST:) in the auction for the end-user computing (EUC) sector, according to sources.

The source added that the deal could be announced as early as Monday. The person requested 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 that it planned to sell its end-user computing division. It is attempting to sell VMware’s security software business, Carbon Black, separately.

KKR is no stranger to deals in the sector.

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

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

Evercore, Deutsche Bank and Jefferies are advising KKR on the deal, while Citigroup is advising Broadcom, the people said. UBS Group, Jefferies and KKR’s capital markets division are providing debt financing for the transaction.