Saturday, April 13, 2024

KKR to Acquire Broadcom’s End-user Computing Unit for  $4 billion – Insights Success

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Investment firm KKR & Co. (NYSE: KKR) has entered into a definitive agreement to acquire Broadcom Inc.’s (NASDAQ: AVGO) End-User Computing Division (EUC Division) for around $4 billion. Previously part of VMware (NYSE: VMW) before Broadcom’s acquisition, the EUC Division will operate as an independent entity following the completion of the transaction, expected in 2024, pending regulatory approvals.

The EUC Division specializes in digital workspace solutions, notably Horizon, a desktop and application virtualization platform, and Workspace ONE, a unified endpoint management platform. These products are tailored to securely manage and deliver applications, desktops, and data across diverse devices and platforms.

KKR aims to bolster the growth of the EUC Division through advancements in product innovation, customer service, and strategic partnerships. The investment will facilitate an expansion in research and development, sales, and customer success resources. Shankar Iyer will continue to spearhead the division as Senior Vice President and General Manager.

This transaction aligns with KKR’s strategy of investing in companies with growth potential and nurturing a robust ownership culture through its broad-based employee ownership program. This approach underscores KKR’s investment philosophy, which seeks to align employee interests with business success.

Evercore, Deutsche Bank Securities Inc., and Jefferies LLC are providing financial advisory services to KKR, with legal counsel provided by Simpson Thacher & Bartlett LLP. Citi is serving as the exclusive financial advisor to Broadcom.

The financing for KKR’s acquisition primarily comes from its North America Fund XIII. KKR is recognized for its broad investment portfolio and comprehensive array of alternative asset management services, spanning private equity, credit, real assets, capital markets, and insurance solutions.

This acquisition signifies a notable shift for the EUC Division, allowing it to concentrate solely on its range of digital workspace solutions and seize opportunities presented by the changing dynamics of the contemporary workplace.

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