KKR to Acquire Broadcom’s End-User Computing Division
26 Febrero 2024 - 7:30AM
Business Wire
KKR today announced the signing of a definitive agreement with
Broadcom Inc. (NASDAQ: AVGO) to acquire its End-User Computing
Division (the “EUC Division”) in a transaction valued at
approximately $4 billion. Upon closing of the transaction, the EUC
Division will become a standalone company, with greater access to
growth capital and a dedicated strategic focus on empowering
customers and partners worldwide with innovative digital workspace
solutions.
Originally a division of VMware prior to Broadcom’s acquisition,
the EUC Division provides a leading suite of digital workspace
solutions that allow organizations to securely deliver and manage
applications, desktops and data across any device or platform. Its
flagship products include Horizon, a leading desktop and
application Virtualization platform, and Workspace ONE, a marquee
Unified Endpoint Management (“UEM”) platform for the enterprise,
along with common platform services of data, identity and
workflows. The EUC Division leverages advanced data and
intelligence in order to drive greater scale, speed and
effectiveness for today’s modern, digital workspace.
“Workspace ONE and Horizon are best-in-class platforms chosen by
many of the world’s leading enterprises to create seamless and
secure digital workspaces with interoperability across increasingly
complicated technology stacks,” said Bradley Brown, Managing
Director at KKR. “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.”
As a standalone company, the EUC Division will continue to be
run by its existing management team led by Shankar Iyer. In
addition to expanding R&D and pursuing new strategic
partnerships, KKR plans to support the EUC Division’s focus on
customer relationships through significant investments across
go-to-market functions. The standalone business will be positioned
to make long-term investments in resourcing for customer success,
partner support and an expanded, dedicated sales team.
“We are confident that this pending transaction marks an
exciting next chapter for the EUC Division and one that will create
enormous opportunities and benefits for our customers, partners and
employees,” said Shankar Iyer, Senior Vice President and General
Manager, End-User Computing Division, Broadcom. “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.”
“EUC is a leader within large, high growth categories and demand
for the business’s marquee offerings continues to grow as the
workplace and the needs at the front-line evolve rapidly,” said
John Park, Partner at KKR. “We are excited to deploy our experience
and toolkit at KKR to back a world-class company in its next
chapter as a standalone business, with accelerated investment and a
continued focus on product and customer-centricity.”
After becoming a standalone company, the EUC Division will
implement KKR's broad-based employee ownership program, which makes
all employees owners in their respective businesses alongside KKR.
This strategy is based on the belief that employee engagement and a
strong ownership culture are key drivers in building stronger
companies. Since 2011, KKR portfolio companies have awarded
billions of dollars of total equity value to over 60,000 non-senior
management employees across more than 40 portfolio companies.
KKR is making its investment primarily through its North America
Fund XIII. The transaction is expected to close in 2024, subject to
customary closing conditions, including regulatory approvals.
Evercore, Deutsche Bank Securities Inc. and Jefferies LLC are
acting as financial advisors and Simpson Thacher & Bartlett LLP
is acting as legal advisor to KKR. Citi is serving as exclusive
financial advisor to Broadcom.
About End-User Computing (EUC) Division
End-User Computing Division is the digital work platform leader,
trusted by thousands of organizations worldwide as the former
VMware EUC business. The EUC digital work platform unifies,
automates, and efficiently scales the digital workspace. The
intelligence-driven platform enables IT to deliver a secure and
productive experience for all employees, across their devices,
efficiently at scale. By empowering employees to do their best
work, anywhere, we help workforces everywhere unlock exponential
business value.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
For additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
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