138 million US dollars! Broadcom will sell remote access services?

According to news on February 24th, chip manufacturer Broadcom is about to reach a $3.8 billion (approximately RMB 27.3 billion) deal to sell its remote access business, which allows users to access desktops and applications from any device, to private equity firm KKR.

This potential transaction represents Botong CEO Hock Tan's efforts to streamline the company's investment portfolio after completing a $69 billion acquisition of software manufacturer VMware in November 2023.

According to insiders, KKR has defeated other private equity firms, including EQT, in its bid for the End User Computing (EUC) division. This transaction may be announced as early as February 26th.

Insiders pointed out that Evercore, Deutsche Bank, and Jefferies provide trading advice to KKR, while Citigroup provides advice to Broadcom. UBS Group, Jefferies, and KKR's capital markets departments will provide debt financing for the transaction.

It is reported that Broadcom announced in December 2023 that it will seek to divest its end-user computing department. In addition, the company is attempting to spin off VMware's security software business Carbon Black.

KKR is not unfamiliar with transactions in the software industry. In 2018, the company acquired American commercial software company BMC for $8.5 billion, and two years later, the company merged BMC with Compuware acquired from acquiring company Thomas Bravo. In 2021, KKR acquired information service technology provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners for approximately $1.7 billion.

From: jiwei.com