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An indication on the campus places of work of chipmaker Broadcom is proven in Irvine, California.
Mike Blake | Reuters
Chipmaker Broadcom is nearing a $3.8 billion deal to promote its enterprise that enables customers to entry desktops and functions from any gadget to private-equity agency KKR, individuals conversant in the matter mentioned on Saturday.
The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the corporate’s portfolio after finishing its $69 billion takeover of software program maker VMware in November.
KKR prevailed within the public sale for the end-user computing (EUC) unit over different non-public fairness corporations, together with EQT, the sources mentioned.
The deal might be introduced as early as Monday, the sources added, requesting anonymity as a result of the matter is confidential.
KKR declined to remark. Broadcom and EQT didn’t instantly reply to requests for remark.
Broadcom mentioned in December it might search to divest its end-user computing unit. It’s individually trying to shed VMware’s safety software program enterprise Carbon Black.
KKR is not any stranger to dealmaking within the sector.
In 2018, it bought U.S. enterprise software program firm BMC for $8.5 billion and two years later it mixed BMC with Compuware, an organization it acquired from buyout agency Thoma Bravo.
In 2021, KKR acquired info companies expertise supplier Ensono from private-equity corporations Charlesbank Capital Companions and M/C Companions for about $1.7 billion.
Evercore, Deutsche Financial institution and Jefferies are advising KKR on the transaction, whereas Citigroup is advising Broadcom, the sources mentioned. UBS Group, Jefferies and KKR’s capital market unit are offering debt financing for the deal.
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