A sign is seen at chipmaker Broadcom's campus offices in Irvine, California.
Mike Blake | Portal
Chipmaker Broadcom is nearing a $3.8 billion deal to sell its business, which allows users to access desktops and applications from any device, to private equity firm KKR, people familiar with the matter said on Saturday.
The potential deal represents an attempt by Broadcom CEO Hock Tan to streamline the company's portfolio after completing its $69 billion acquisition of software maker VMware in November.
According to the sources, KKR beat other private equity firms, including EQT, in the auction for the end-user computing (EUC) unit.
The deal could be announced as early as Monday, the sources added, requesting anonymity because the matter is confidential.
KKR declined to comment. Broadcom and EQT did not immediately respond to requests for comment.
Broadcom announced in December that it would seek to divest its end-user computing unit. Additionally, the company is trying to get rid of VMware's security software business, Carbon Black.
KKR is no stranger to doing business in the industry.
In 2018, the company bought US business software company 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 provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners for approximately $1.7 billion.
According to the sources, Evercore, Deutsche Bank and Jefferies are advising KKR on the transaction, while Citigroup is advising Broadcom. UBS Group, Jefferies and KKR's capital markets division are providing debt financing for the deal.