The Potential Sale of Broadcom’s Remote Access Unit to KKR
Chipmaker Broadcom Nears $3.8 Billion Deal with KKR
Chipmaker Broadcom is reportedly close to finalizing a $3.8 billion deal with private equity firm KKR for its remote access unit. This business enables users to access desktops and applications from any device, offering convenience and flexibility.
Streamlining Broadcom’s Portfolio
CEO Hock Tan’s move to sell the end-user computing unit is part of Broadcom’s strategy to streamline its portfolio following the completion of the $69 billion acquisition of software maker VMware in November. This streamlining process aims to optimize the company’s operations and focus on core competencies.
Deal Details and Competition
KKR emerged victorious in the auction for Broadcom’s end-user computing unit, outbidding other private equity firms including EQT. The deal, expected to be announced soon, signifies a significant step in Broadcom’s restructuring efforts to enhance its market position and drive growth.
KKR’s Previous Deals in the Sector
KKR’s track record in the technology sector includes notable acquisitions such as U.S. business software company BMC in 2018 and Ensono, an information services technology provider, in 2021. These acquisitions reflect KKR’s strategic focus on expanding its presence in the technology and software landscape.
Financial Advisory and Debt Financing
Eminent advisory firms including Evercore, Deutsche Bank, and Jefferies are assisting KKR in the transaction, while Citigroup is advising Broadcom. UBS Group, Jefferies, and KKR’s capital market unit are slated to provide debt financing for the deal. These financial arrangements underscore the complexity and scale of the impending transaction.
