KKR nears $3.8bn deal to buy Broadcom's VMware end user compute business: Report

Broadcom is seeking to unload $1bn EUC business post-VMware acquisition

Private equity powerhouse KKR is eyeing a deal to buy Broadcom's VMware end user compute (EUC) business for $3.8bn, according to a report from Reuters.

Broadcom is seeking to unload the estimated $1bn EUC business after its $69bn acquisition of VMware last year.

The deal could be announced as early as Monday, Reuters reported Saturday.

KKR declined to comment. CRN reached out to Broadcom but had not heard back at press time.

KKR already owns Alludo, which includes virtualisation software Parallels and could pair well with the VMware EUC business. Alludo refers to itself as a software provider that reimagines where, when and how people work.

"KKR would be a good home for the EUC business," said a top executive for a VDI software maker, who did not want to be identified.

"If KKR is successful, it could be a very, very good thing for the industry. Uncertainty is not good for the VMware EUC business or the VDI market as a whole. I think KKR would be a good steward of the technology and the business.

"I am sure they want to invest in the business and build on the VMware EUC innovation. This could be a new EUC powerhouse that would be good for the VDI industry."

The software executive said he sees the deal as a sharp contrast to Vista Equity Partners' $16.5bn acquisition of VDI software maker Citrix in 2022.

"KKR would be getting an incredibly good deal for a $1bn business that has a very competitive stack of technology for not only delivering virtualised desktops and applications but also managing a wide variety of devices," said the software executive.

"I think this is the best possible outcome for employees, customers and partners. This is good news for VMware EUC solution providers. A no man's land for the business wasn't helping anybody."