Broadcom to strike $4b-deal with KKR

KKR & Co. is close to finalising a $4 billion deal to acquire a software business from Broadcom Inc., Bloomberg reported on Sunday, citing sources familiar with the matter. The acquisition is expected to be announced as soon as Monday. 

Broadcom is selling its end-user computer unit, acquired as part of its $61 billion purchase of software maker VMware Inc. in 2023. The unit provides software for remote access to desktops and applications.

KKR declined to comment, and Broadcom has not responded to requests for comment. EQT AB and Thoma Bravo were also reportedly interested in acquiring the unit.

Broadcom is also planning to divest another non-core VMware asset, a security software business called Carbon Black, which could be valued at about $1 billion including debt. 

Hock Tan, Broadcom CEO, aims to expand the company’s presence in hybrid cloud services, which cater to businesses storing data in their own facilities and outside server farms.