Broadcom, the chipmaker, is on the verge of finalizing a $3.8 billion agreement to offload its end-user computing (EUC) business to private equity firm KKR Reuters news report said.
The potential deal marks a strategic move by Broadcom’s CEO, Hock Tan, to streamline the company’s portfolio following its recent $69 billion acquisition of software maker VMware in November.
KKR has emerged as the winning bidder in the auction for Broadcom’s EUC unit, outpacing other contenders, including EQT. Broadcom is likely to announce the deal with KKR on Monday.
Broadcom announced its intention to sell its end-user computing unit in December. Broadcom is also options to offload VMware’s security software business Carbon Black.
KKR has a track record of significant dealmaking in the technology sector. In 2018, KKR acquired U.S. business software company BMC for $8.5 billion and later merged it with Compuware, a company purchased from buyout firm Thoma Bravo.
Additionally, in 2021, KKR acquired information services technology provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners for $1.7 billion, according to news reports.
