KKR Nears $4 Billion Acquisition of Broadcom Software Division

KKR Nears $4 Billion Acquisition of Broadcom Software Division

KKR & Co is nearing a $4 billion acquisition of a software division from Broadcom Inc, specializing in remote desktop and application access. The unit was acquired by Broadcom through its 2023 takeover of VMware Inc.

Bloomberg reports that other equity firms, including EQT AB and Thoma Bravo, have expressed interest in the acquisition. Broadcom, headquartered in San Jose, also plans to sell Carbon Black, a security software unit worth approximately $1 billion, as part of its strategy to offload non-core VMware assets.

The sale follows Broadcom's completion of the VMware acquisition in November 2023. The company's CEO, Hock Tan, aims to enhance its hybrid cloud services presence through the acquisition.

KKR, known for its investments in the technology sector, has a track record of acquiring and merging companies in this space. The firm has previously purchased BMC for $8.5 billion and acquired Ensono for $1.7 billion.

Financial advisory firms Evercore, Deutsche Bank, and Jefferies are advising KKR on the transaction, while Citigroup represents Broadcom. UBS Group, Jefferies, and KKR's capital market unit are arranging the debt financing for the acquisition.

Broadcom's divestiture strategy aligns with the trend in the tech industry, where companies are refocusing their portfolios on core areas of growth, particularly in the competitive cloud and software markets.