Broadcom Sells Remote Computing Business in $4B Deal with KKR

Broadcom on Monday announced that it would sell its End-User Computing (EUC) unit to private equity firm KKR for a whopping $4 billion.

The EUC unit, which allows users to access desktops and applications from any device, will operate as a standalone company and will keep the existing management team. Broadcom is making major business shifts after its $69 billion acquisition of VMware last year. The company initially said in December it would look to divest the EUC business and is still looking to shed VMware’s security software business, Carbon Black.

The EUC division’s flagship products include Horizon, a desktop and application virtualization platform, and enterprise endpoint management system, Workspace One.

“We see great potential to grow the EUC Division by empowering this talented team and investing in product innovation, delivering excellence for customers and building strategic partnerships,” Bradley Brown, managing director at KKR, said in a statement.

Under KKR, the EUC will continue to be led by general manager Shankar Iyer.

“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,” Iyer said in a release.

KKR says it will expand research and development and pursue new strategic partnerships “through significant investments across go-to-market functions,” according to the release.

KKR says the transaction is expected to close in 2024, subject to closing conditions and regulatory approvals. VMware’s approval was held up by China regulators, but the deal eventually went through.