Broadcom reportedly nears $3.8 billion sale of distant entry unit to KKR

Chipmaker Broadcom is nearing a $3.8 billion deal to promote its enterprise that permits customers to entry desktops and functions from any system to private-equity agency KKR, folks aware of the matter stated on Saturday.

The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the corporate’s portfolio after finishing its $69 billion takeover of software program maker VMware in November.

KKR prevailed within the public sale for the end-user computing (EUC) unit over different non-public fairness companies, together with EQT, the sources stated.

The deal may very well be introduced as early as Monday, the sources added, requesting anonymity as a result of the matter is confidential.

KKR declined to remark. Broadcom and EQT didn’t instantly reply to requests for remark.

Broadcom stated in December it might search to divest its end-user computing unit. It’s individually making an attempt to shed VMware’s safety software program enterprise Carbon Black.

KKR is not any stranger to dealmaking within the sector.

In 2018, it bought U.S. enterprise software program firm BMC for $8.5 billion and two years later it mixed BMC with Compuware, an organization it acquired from buyout agency Thoma Bravo.

In 2021, KKR acquired data providers expertise supplier Ensono from private-equity companies Charlesbank Capital Companions and M/C Companions for about $1.7 billion.

Evercore, Deutsche Financial institution and Jefferies are advising KKR on the transaction, whereas Citigroup is advising Broadcom, the sources stated. UBS Group, Jefferies and KKR’s capital market unit are offering debt financing for the deal.