Chipmaker Broadcom is in talks to sell its end-user computing unit to private-equity firm KKR in a deal worth $3.8 billion, according to reports. This move comes after Broadcom’s recent acquisition of software maker VMware for $69 billion, as CEO Hock Tan looks to streamline the company’s offerings.
KKR has emerged as the leading bidder in the auction for the EUC unit, outbidding competitors like EQT. While the deal has not been officially announced yet, sources suggest that an announcement could come as early as Monday, with details currently under wraps.
KKR’s successful track record in the technology sector, including acquisitions of companies such as BMC and Ensono, has likely put them in a good position to make this deal. The firm is being advised by Evercore, Deutsche Bank, and Jefferies, while Citigroup is advising Broadcom. Financing for the deal is being provided by UBS Group, Jefferies, and KKR’s capital market unit.
The sale of the end-user computing unit could mark a significant shift in Broadcom’s portfolio, allowing the company to focus on its core business areas. The move also reflects the ongoing trend of consolidation and restructuring within the technology industry as companies look to adapt to changing market conditions. Keep an eye out for further updates on this developing story.
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