‘Private Equity Firm to Purchase End-user Computing Unit from Broadcom for billion’

KKR & Co. has recently announced its plans to acquire Broadcom Inc.’s End-User Computing Division for approximately billion in a strategic move to strengthen its investment portfolio. The EUC Division, previously under VMware before being acquired by Broadcom, specializes in digital workspace solutions such as Horizon and Workspace ONE.

Horizon is a desktop and application virtualization platform, while Workspace ONE is a unified endpoint management platform designed to securely manage and deliver applications, desktops, and data across various devices and platforms. Following the completion of the acquisition, the EUC Division will operate as an independent entity, with Shankar Iyer leading the division as Senior Vice President and General Manager.

KKR intends to enhance the growth of the EUC Division through investments in product innovation, customer service, and strategic partnerships. The firm plans to expand research and development efforts, as well as sales and customer success resources to further propel the division’s success in the market.

This acquisition reflects KKR’s strategy of investing in companies with significant growth potential and fostering a strong ownership culture through an employee ownership program. The firm aims to align the interests of employees with the success of the business, in line with its overall investment philosophy.

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

KKR’s acquisition of the EUC Division is primarily financed through its North America Fund XIII. Known for its diverse investment portfolio and range of alternative asset management services, KKR is a prominent player in the private equity, credit, real assets, capital markets, and insurance solutions sectors.

This acquisition marks a significant development for the EUC Division, allowing it to focus on its digital workspace solutions and capitalize on the evolving dynamics of the modern workplace. The move is expected to position the division for sustained growth and success in the market.