Advertisement
U.S. markets closed
  • S&P 500

    5,123.41
    -75.65 (-1.46%)
     
  • Dow 30

    37,983.24
    -475.86 (-1.24%)
     
  • Nasdaq

    16,175.09
    -267.11 (-1.62%)
     
  • Russell 2000

    2,003.17
    -39.43 (-1.93%)
     
  • Crude Oil

    85.45
    -0.21 (-0.25%)
     
  • Gold

    2,360.20
    -13.90 (-0.59%)
     
  • Silver

    27.97
    -0.36 (-1.27%)
     
  • EUR/USD

    1.0646
    -0.0085 (-0.79%)
     
  • 10-Yr Bond

    4.4990
    -0.0770 (-1.68%)
     
  • GBP/USD

    1.2443
    -0.0112 (-0.89%)
     
  • USD/JPY

    153.0620
    -0.1410 (-0.09%)
     
  • Bitcoin USD

    64,190.44
    +1,720.35 (+2.75%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,995.58
    +71.78 (+0.91%)
     
  • Nikkei 225

    39,523.55
    +80.95 (+0.21%)
     

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

By Milana Vinn

(Reuters) -Chipmaker Broadcom 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 in November.

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

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.

(Reporting by Milana Vinn in New YorkEditing by Anirban Sen and Marguerita Choy)

Advertisement