Milana Wynn
(Reuters) – Chipmaker Broadcom (NASDAQ:) is close to a $3.8 billion deal to sell its business, which allows users to access desktop computers and apps from any device, to private equity firm KKR, people said on Saturday. familiar with the situation.
The potential deal represents Broadcom CEO Hock Tan’s attempt to streamline the company’s portfolio after completing its $69 billion takeover of software maker VMware (NYSE:) in November.
KKR prevailed in an auction to acquire its end-user computing (EUC) unit over other private equity firms including EQT (ST:), sources said.
The deal could be announced as early as Monday, added the sources, who asked to remain anonymous because the matter is private.
KKR declined to comment. Broadcom and EQT did not immediately respond to requests for comment.
In December, Broadcom said it would seek to sell its end-user computer division. Separately, the company is trying to divest VMware’s Carbon Black security business.
KKR is no stranger to deal making in this sector.
In 2018, it acquired US business software company BMC for $8.5 billion and two years later merged BMC with Compuware, a company it acquired from buyout firm Thoma Bravo.
In 2021, KKR acquired information services provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners for approximately $1.7 billion.
Evercore, Deutsche Bank and Jefferies are advising KKR on the deal, while Citigroup is advising Broadcom, the people said. UBS Group, Jefferies and KKR’s capital markets unit are providing debt financing for the transaction.