Chipmaker Broadcom Nears $3.8 Billion Sale to KKR
Exclusive Deal with KKR
Chipmaker Broadcom is on the verge of finalizing a $3.8 billion deal to sell its remote access business to private equity firm KKR, sources revealed on Saturday. The sale includes a unit that enables users to access desktops and applications from any device, marking a strategic move by CEO Hock Tan to streamline Broadcom’s operations following its recent acquisition of software maker VMware.
Streamlining Efforts
The potential deal with KKR signifies Broadcom’s commitment to optimizing its portfolio after the $69 billion takeover of VMware. KKR emerged victorious in the auction for the end-user computing unit, outbidding other firms like EQT. The agreement is expected to be announced soon, possibly as early as Monday, according to insiders who requested anonymity due to the confidential nature of the matter.
Deal Making Expertise
KKR’s involvement in the tech sector is not new. In previous years, the firm made significant acquisitions such as U.S. business software company BMC and Ensono, an information services technology provider. For the current transaction, Evercore, Deutsche Bank, and Jefferies are advising KKR, while Citigroup is assisting Broadcom. UBS Group, Jefferies, and KKR’s capital market unit are providing debt financing for the deal.
Strategic Moves
Broadcom announced its intention to divest the end-user computing unit in December, alongside efforts to offload VMware’s security software business. KKR’s history of successful deal-making in the industry positions them as a key player in this acquisition. The move aligns with Broadcom’s strategic goals and reflects the evolving landscape of the tech market.
Industry Expertise
With a focus on enhancing operational efficiency and maximizing value, Broadcom’s deal with KKR highlights the ongoing transformations within the tech sector. The collaboration between the two entities underscores the importance of strategic partnerships and acquisitions in driving innovation and growth in the industry.
