Global investment firm KKR has announced its plan to purchase Broadcom Inc.'s End-User Computing Division for approximately $4 billion.
The transaction is poised to transition the division into an independent company, focused on enhancing digital workspace solutions across the globe.
This is technology M&A deal number 51 that ChannelE2E and MSSP Alert have covered so far in 2023. See more than 2,000 technology M&A deals for 2023, 2022, 2021, and 2020 listed here.
KKR, founded in 1976, is based in New York. The company has over 1,500 employees listed on LinkedIn. KKR's areas of expertise include private equity, real estate, credit, and hedge fund management.
Broadcom Inc., founded in 1961, is based in San Jose, California. The company has 56,396 employees listed on LinkedIn. Broadcom Inc.'s areas of expertise include Bluetooth solutions, cable modems, knowledge-based processors, satellite & IPTV stbs, xdsl, EPON, enterprise/smb/core switching, GbE, GPS, mobile communications, network infrastructure, powerline communications, NFC, wireless networks, GPON, software.
About The Deal
The EUC Division, previously a part of VMware prior to Broadcom's acquisition, specializes in delivering and managing applications, desktops, and data across various devices and platforms.
Its key products include Horizon and Workspace ONE, which serve as vital components for enterprises seeking secure and efficient digital workspace solutions.
The transition will see the EUC Division operated by its current management team, led by Shankar Iyer, the company said. KKR says it intends to support the division's growth through investments in research and development, strategic partnerships, and an enhanced focus on customer and partner relationships.
The transaction, expected to close in 2024, is subject to customary closing conditions and regulatory approvals. Financial advisors for KKR include Evercore, Deutsche Bank Securities Inc., and Jefferies LLC, with legal advice from Simpson Thacher & Bartlett LLP. Citi served as the exclusive financial advisor to Broadcom.
KKR Acquisition: Leadership Insight
Shankar Iyer, senior vice president and general manager, End-User Computing Division, Broadcom, commented:
"We are confident that this pending transaction marks an exciting next chapter for the EUC Division and one that will create enormous opportunities and benefits for our customers, partners and employees."
Bradley Brown, managing director, KKR, said:
"Workspace ONE and Horizon are best-in-class platforms chosen by many of the world’s leading enterprises to create seamless and secure digital workspaces with interoperability across increasingly complicated technology stacks."
John Park, Partner at KKR, added:
"EUC is a leader within large, high growth categories and demand for the business’s marquee offerings continues to grow as the workplace and the needs at the front-line evolve rapidly."
