The American semiconductor manufacturer's proposed transaction with KKR represents an initiative by the former's CEO Hock Tan to streamline the company's portfolio following its $69bn acquisition of cloud computing and virtualisation technology firm VMware
Broadcom nears a deal worth $3.8bn to divest its remote access unit to KKR. (Credit: Coolcaesar/Wikipedia.org)
American semiconductor manufacturer Broadcom is reportedly closing on a deal worth $3.8bn to divest its remote access unit to KKR.
The business involved in the potential deal facilitates users in accessing desktops and applications from various devices.
An announcement about the deal could be made soon, reported Reuters, citing undisclosed sources with knowledge of the matter.
The sources indicated that KKR emerged as the winner in the auction for the end-user computing (EUC) unit, surpassing other private equity firms, including EQT.
None of the parties immediately responded to requests for comment made by the news agency.
Based in California, Broadcom is focused on delivering technology, semiconductor, and infrastructure software solutions for customers to build and grow successful businesses in a constantly changing environment.
According to the publication, the proposed transaction with KKR represents an initiative by Broadcom CEO Hock Tan to optimise the company’s portfolio following its $69bn acquisition of cloud computing and virtualisation technology firm VMware.
Broadcom completed the acquisition of VMware in November 2023 after the receipt of legal merger clearance in Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, and the UK.
It also secured foreign investment control clearance in all the required jurisdictions.
The cash-and-stock transaction made VMware a privately held company. It was delisted from the New York Stock Exchange (NYSE).
Through the acquisition, Broadcom aims to help enterprise clients in creating and modernising their private and hybrid cloud environments.
It also intended to invest in VMware Cloud Foundation, which is the software stack that acts as the foundation of private and hybrid clouds.
Reuters also reported that Broadcom is trying to sell off VMware’s security software business Carbon Black.