Broadcom is on the verge of signing a $3.8 billion agreement to sell its EUC unit to private equity firm KKR.
Broadcom is on the verge of signing a $3.8 billion agreement to sell its EUC unit to private equity firm KKR.

Broadcom Nears $3.8 Billion Deal to Sell EUC Business to KKR

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Broadcom, the prominent chipmaker, is on the brink of finalizing a $3.8 billion agreement to offload its end-user computing (EUC) business to private equity firm KKR, according to individuals familiar with the matter.

Strategic Portfolio Streamlining Under Broadcom:

The potential deal signifies Broadcom CEO Hock Tan’s strategic initiative to streamline the company’s portfolio following its $69 billion acquisition of software giant VMware in November.

KKR emerged as the successful bidder in the auction for Broadcom’s EUC unit, surpassing other contenders, including EQT, in the private equity space.

Anticipated Announcement and Confidentiality:

Sources indicate that the deal’s announcement could occur as early as Monday, although they stress the need for anonymity due to the confidential nature of the matter.

KKR’s involvement in previous deals within the technology sector underscores its familiarity with such transactions. 

Also Read: Market Watchers Analyze China’s Gradual Economic Stimulus Approach

KKR’s acquisition of U.S. business software company BMC for $8.5 billion in 2018 and subsequent strategic moves in the industry illustrate its expertise and track record.

Financial Advisory and Debt Financing Details:

Evercore, Deutsche Bank, and Jefferies reportedly advise KKR on the transaction, while Citigroup serves as Broadcom’s advisor. 

Furthermore, UBS Group, Jefferies, and KKR’s capital market unit are poised to provide debt financing for the deal, facilitating its execution.

Jean Martin

Jean Martin, a seasoned Correspondent Author at USA Guardian Magazine, specializes in transforming complex subjects into engaging narratives. With a keen eye for detail and a commitment to truth, her work spans politics, culture, and technology, enriching the magazine's diverse content. Jean's reporting not only informs but also inspires readers, showcasing her belief in journalism's power to drive change.

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