KKR & Co is nearing a deal worth about US$4 billion to buy a software business from Broadcom, according to people with knowledge of the matter.
The acquisition could be announced as soon as Monday (Feb 26), said the people, who asked not to be identified because the details have not been made public.
Broadcom is selling its so-called end-user computer unit, which it inherited as part of its US$61 billion acquisition of software maker VMware in 2023. The business provides software enabling users to access desktops and applications remotely.
A representative for KKR declined to comment. Broadcom did not immediately respond to a request for comment. Reuters reported that the companies were nearing an agreement earlier.
EQT and Thoma Bravo were also among the private equity firms interested in acquiring the Broadcom unit, Bloomberg News previously reported.
San Jose-based Broadcom has outlined plans to divest a second VMware asset it deemed as non-core. The other is a security software business called Carbon Black, which Bloomberg News reported could be valued at about US$1 billion including debt.
Broadcom completed its takeover of VMware in November following an unexpectedly long 18-month process that culminated in regulatory approval from China. Broadcom chief executive officer Hock Tan will use the deal to build a bigger foothold in so-called hybrid cloud services, which cater to businesses that store data both in their own facilities and outside server farms. BLOOMBERG
