Private equity firm KKR is on its way to purchasing an end-user computer (EUC) unit from chipmaker Broadcom in a $3.8 billion deal, according to a source familiar with the situation. The deal may be announced as early as today. The unit provides access to a user’s desktop and applications from any device.
Broadcom said in December that it was looking to sell the business, and other private equity firms, including EQT, bid for it. Broadcom is also looking to get rid of VMware’s security software business Carbon Black.
Citigroup is reportedly advising Broadcom on the deal, while Deutsche Bank, Jefferies and Evercore are advising KKR. Debt financing will be handled by UBS Group, Jefferies and KKR’s capital market unit.
KKR acquired BMC, a U.S. business software company, in 2018 for $8.5 billion, which it combined with Compuware two years later. Additionally, the company purchased Ensono, an information services technology provider, in 2021.