FILE PHOTO: A smartphone with a displayed Broadcom emblem is positioned on a pc motherboard on this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Picture
Chipmaker Broadcom is nearing a $3.8 billion deal to promote its enterprise that enables customers to entry desktops and functions from any machine to non-public fairness agency KKR, individuals accustomed to the matter mentioned 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.
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KKR prevailed within the public sale for the end-user computing (EUC) unit over different personal fairness corporations, together with EQT, the sources mentioned.
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 mentioned in December it will 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 isn’t any stranger to dealmaking within the sector.
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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 companies know-how supplier Ensono from personal fairness corporations 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 mentioned. UBS Group, Jefferies and KKR’s capital market unit are offering debt financing for the deal.
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