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Broadcom divests End-User Computing to KKR in $4B deal

Broadcom has agreed to sell its End-User Computing (EUC) division to investment firm KKR in a deal valued at $4 billion. This move will see the division, which focuses on digital workspace solutions, becoming an independent company following the sale’s completion.

The division, previously under VMware before Broadcom’s acquisition, offers technologies that support the secure management of applications, desktops, and data across different devices and platforms. Its primary products are Horizon, a virtualization platform, and Workspace ONE, a management platform for enterprise endpoints, along with various supporting services.

Under the new arrangement, the division will continue to operate with its existing management team, headed by Shankar Iyer. Plans include increased investment in research and development, new strategic partnerships, and enhanced customer and partner engagement efforts. The company also aims to expand its sales team to support these initiatives.

Following the transition, KKR plans to introduce an employee ownership program within the division. This approach has previously been applied across KKR’s portfolio, benefiting tens of thousands of employees.

The investment for this acquisition comes from KKR’s North America Fund XIII, with the transaction’s closure anticipated in 2024, subject to regulatory approvals and standard closing conditions.

Advisory services for the deal include financial guidance from Evercore, Deutsche Bank Securities, and Jefferies to KKR; with legal advice from Simpson Thacher & Bartlett. Broadcom’s financial advising was handled exclusively by Citi.

[Image courtesy: Broadcom]

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