The potential deal represents an effort by Broadcom CEO Hock
Tan to streamline the company's portfolio after completing its $69 billion
takeover of software maker VMware in November.
KKR prevailed in the auction for the end-user computing
(EUC) unit over other private equity firms, including EQT (EQTAB.ST), opens new
tab, the sources said.
The deal could be announced as early as Monday, the sources
added, requesting anonymity because the matter is confidential
KKR declined to comment. Broadcom and EQT did not
immediately respond to requests for comment.
Broadcom said in December it would seek to divest its
end-user computing unit. It is separately attempting to shed VMware's security
software business Carbon Black.
KKR is no stranger to dealmaking in the sector.
In 2018, it purchased U.S. business software company BMC for
$8.5 billion and two years later it combined BMC with Compuware, a company it
acquired from buyout firm Thoma Bravo.
In 2021, KKR acquired information services technology
provider Ensono from private equity firms Charlesbank Capital Partners and M/C
Partners for about $1.7 billion.
Evercore, Deutsche Bank and Jefferies are advising KKR on
the transaction, while Citigroup is advising Broadcom, the sources said. UBS
Group, Jefferies and KKR's capital market unit are providing debt financing for
the deal.
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