A sign appears at the campus offices of chipmaker Broadcom in Irvine, California.
Mike Blake | Reuters
Chip maker Broadcom It's nearing a $3.8 billion deal to sell its business, which allows users to access desktops and apps from any device, to a private equity firm. KKRon Saturday, people familiar with the matter said.
The potential deal represents an effort by Broadcom CEO Hock Tan to simplify the company's portfolio after completing its $69 billion acquisition of software maker VMware in November.
KKR won the auction for its end-user computing (EUC) unit over other private equity firms, including EQT, the sources said.
The sources, who requested anonymity because the matter is confidential, added that the deal may be announced on Monday.
KKR declined to comment. Broadcom and EQT did not immediately respond to requests for comment.
Broadcom said in December that it would seek to divest its end-user computing unit. It is separately trying to divest VMware Carbon Black's security software business.
KKR is no stranger to deal making in this sector.
In 2018, the US business software company bought 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 technology 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 sources said. UBS Group, Jefferies and KKR's capital markets unit are providing debt financing for the deal.
