KKR Reportedly Eyeing $3.8 Billion Deal to Acquire Broadcom's VMware EUC Business
ICARO Media Group
Title: KKR Reportedly Eyeing $3.8 Billion Deal to Acquire Broadcom's VMware EUC Business
According to a recent report from Reuters, private equity giant KKR is in talks to purchase Broadcom's VMware End User Compute (EUC) business for a hefty sum of $3.8 billion. This move comes as Broadcom looks to divest the roughly $1 billion EUC business following its massive $69 billion acquisition of VMware last year.
The potential deal, which may be officially announced as early as Monday, has generated significant interest within the industry. A top executive for a VDI software maker, speaking on condition of anonymity, expressed optimism about the prospect of KKR taking over the VMware EUC business. They highlighted that KKR's ownership of Alludo, a software provider that includes virtualization software Parallels, could complement and enhance the capabilities of the VMware EUC business.
The VDI software executive emphasized that KKR's investment could bring stability and innovation to the VMware EUC market, contrasting it with other recent acquisitions in the industry. Notably, they mentioned Vista Equity Partners' $16.5 billion acquisition of VDI software maker Citrix in 2022.
Stakeholders, including employees, customers, and partners, are hopeful that KKR's potential acquisition of the VMware EUC business will lead to positive outcomes and opportunities for growth within the VDI market. The industry expert stressed that uncertainty surrounding the business was detrimental to all involved parties and that a new partnership with KKR could potentially create a powerful player in the EUC sector.
While KKR declined to comment on the matter, Broadcom has not responded to queries from CRN at the time of reporting. As discussions continue behind closed doors, the potential acquisition of Broadcom's VMware EUC business by KKR remains a developing story to watch in the coming days.