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Once the deal closes, the computing division will become a standalone company run by its existing management team led by Shankar Iyer.
Major chipmaker Broadcom has agreed to sell its end-user computing (EUC) division to global investment firm KKR in a multibillion-dollar deal.
Originally a division of VMware, the EUC division provides a suite of digital workspace tools to allow organisations to manage applications remotely. The division came under the Broadcom umbrella following the chipmaker’s $61bn acquisition of VMware late last year following months of regulatory scrutiny.
The division’s flagship products include Horizon, a desktop and application virtualisation platform, and Workspace ONE, a unified endpoint management platform.
Once the deal closes, the computing division will become a standalone company run by its existing management team led by Shankar Iyer.
KKR’s managing director Bradley Brown said both Horizon and Workspace ONE are “best-in-class platforms” that create seamless digital workspaces.
“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,” he said.
Under KKR, the new standalone company will expand its R&D and pursue new partnerships with support from KKR to make long-term investments in resourcing for customer success, partner support and sales.
Iyer said the transaction marks an exciting new chapter for the EUC division. “The KKR team knows our industry well and is the ideal strategic partner to help us become a standalone company with an exclusive focus on delivering powerful tools for the digital workspace.”
The transaction is expected to close in 2024, subject to customary closing conditions, including regulatory approvals.
According to Marketwatch, shares in Broadcom gained 0.8pc into record territory in premarket trading today (26 February) following the announcement of the sale, which could be seen as its latest move to slim down its inventory.
Shortly after the acquisition of VMware last year, the chipmaker announced it was shifting VMware licensing to a subscription model to “simplify its portfolio” and better serve its customers.
The VMware acquisition also led to layoffs, with reports that more than 2,000 global job cuts have occurred as a result.
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