© Reuters. FILE PHOTO: A smartphone with the Broadcom logo placed on the motherboard of a computer in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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(Reuters) -Chip maker Broadcom (NASDAQ is close to closing a $3.8 billion deal to sell its business that allows users to access desktops and applications from any device to private equity firm KKR, they said. on Saturday people familiar with the matter.
The potential deal represents an effort by Broadcom CEO Hock Tan to rationalize the company's portfolio after completing its $69 billion acquisition of software maker VMware (NYSE:) in November.
KKR prevailed in the auction of the end-user computing (EUC) unit against other private equity firms including EQT (ST:), the sources said.
The deal could be announced as early as Monday, added the sources, who requested anonymity because the matter is confidential.
KKR declined to comment. Broadcom and EQT did not immediately respond to requests for comment.
Broadcom said in December it would look to sell its end-user computing unit. Separately, it is trying to divest VMware's security software business, Carbon Black.
KKR is no stranger to deals in the sector.
In 2018, it bought US enterprise software company BMC for $8.5 billion and two years later combined BMC with Compuware, a company it acquired from buyout firm Thoma Bravo.
In 2021, KKR acquired information services technology provider Ensono from private equity firms Charlesbank Capital Partners and M/C Partners for approximately $1.7 billion.
Evercore, Deutsche Bank and Jefferies are advising KKR on the transaction, while Citigroup is advising Broadcom, the sources said. UBS Group, Jefferies and KKR's capital markets unit will finance the operation through debt.
