KKR said it will buy Broadcom VMware's End-User-Computing (EUC) division in a deal valued at $4 billion. With the move, Broadcom can focus on VMware's business and EUC will become an independent company.

EUC will include Workplace One, a remote access digital workspace, and Horizon, as well as an autonomous workspace emerging roadmap. In a blog post, Shankar Iyer, senior vice president and general manager at Broadcom VMware's EUC division, said KKR will be dedicated to EUC's customer base and keep existing management in place.

During its December earnings conference call, Broadcom said EUC and Carbon Black, which wasn't included in the deal with KKR, has about $2 billion in annual revenue. Broadcom CEO Hock Tan said the EUC and Carbon Black had strong assets. "We’ll find good homes for them because there are a lot of very interested parties who are more than happy to take those assets. And we’ll be very, very thoughtful about where we put those assets eventually, simply because the customers of many of these two assets, many of the customers are also the same customers to the VMware Cloud Foundation," said Tan.

At VMware Explore in August, EUC outlined a series of AI integrations with its Anywhere Workplace platform as well as virtual desktop, endpoint management and security advances. Boeing was also referenced as a VMWare Workspace One customer at scale.

In a statement, KKR Managing Director Bradley Brown said the private equity firm will continue to invest in Workspace One and Horizon as well expand its partner support and go-to-market efforts. The deal is expected to close in 2024.

KKR portfolio companies in technology include BMC, Barracuda aPeoplend Cloudera. EUC rival Citrix was acquired by Vista Equity Partners and Evergreen Coast Capital in 2022 and later merged with Tibco.

With the EUC sale, Broadcom can focus on VMware, which has rattled some customers with its pricing changes.


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