KKR to Acquire Broadcom’s End-User Computing Division
KKR recently announced its plans to purchase the End-User Computing Division (EUC Division) from Broadcom Inc. for approximately $4 billion. This significant acquisition will transform the EUC Division into an independent entity, aiming to revolutionize digital workspace solutions for customers and partners globally.
Previously operating under VMware before being acquired by Broadcom, the EUC Division specializes in a premier collection of digital workspace solutions. These solutions are designed to enable organizations to securely provision and manage applications, desktops, and data across various devices or platforms. The division’s flagship products, Horizon and Workspace ONE, are leaders in desktop and application virtualization and Unified Endpoint Management (UEM), respectively. These products, complemented by common platform services like data, identity, and workflows, harness advanced analytics to provide scalability, efficiency, and enhanced performance for modern digital workspaces.
Bradley Brown, a Managing Director at KKR, expressed his enthusiasm about the acquisition, noting the potential for growth in the EUC Division by investing in product innovation and building strategic partnerships. He highlighted the excellence of Workspace ONE and Horizon, which are pivotal for enterprises seeking secure and seamless digital workspace experiences across intricate technology landscapes.
The transition to a standalone company includes retaining the division’s current management team lead by Shankar Iyer. With the anticipated expansion in research and development and pursuit of new strategic partnerships, KKR aims to bolster the EUC Division’s commitment to customer engagement through substantial investments in marketing, sales, and support services. Iyer sees the transaction as opening a new chapter filled with opportunities for the division’s customers, partners, and personnel, and emphasizes KKR’s comprehension of their sector as pivotal for their evolution into an independent entity focused on delivering advanced digital workspace tools.
KKR’s John Park shared his excitement for supporting the EUC Division’s development into a standalone business. He emphasized the division’s leadership position within growing market sectors and the increasing demand for its offerings as workplaces and front-line needs evolve rapidly. Park believes that KKR’s experience and resources will be instrumental in the division’s future growth, centered on product enhancement and customer satisfaction.
Once the transaction is complete, the EUC Division will engage in KKR’s comprehensive employee ownership program, aligning the interests of the employees with the company by making them stakeholders in the business. This approach, championed by KKR since 2011, has successfully cultivated stronger, more engaged workforce across its numerous portfolio companies, benefiting thousands of non-senior management employees.
The investment in the EUC Division by KKR is carried out predominantly through its North America Fund XIII, with the transaction expected to conclude in 2024, pending customary regulatory approvals.
This acquisition signals a promising road ahead for the EUC Division, as it aims to redefine the boundaries of digital workspace innovation and customer service under the new ownership and vision of KKR.
