Broadcom to sell end-user computing division to KKR

On Feb. 26, private equity firm KKR announced that it has entered into a definitive agreement to acquire Broadcom’s end-user computing (EUC) unit valued at approximately $4 billion. The EUC division will operate as a standalone company and will continue to be run by its existing management team led by Shankar Iyer, a 10-year veteran of the business.

The EUC division includes Workspace ONE, Horizon and digital experience management products. The intended purchase of these best-in-class solutions follows a pattern of enterprise software industry investments from KKR, which also owns Alludo (Parallels Remote Application Server (RAS)), former Corel products including CorelDraw, and a product by Awingu that aims to bring Secure Remote Access to the Parallels portfolio. For the last several years, Parallels/Alludo has been edging closer to the Citrix, Microsoft, and VMware bubbles in the IDC MarketScape and Gartner Magic Quadrants leaders for this space of IT products. The prospect of having both Parallels and EUC products under the same investment umbrella should result in nothing but very positive things for customers, partners and the EUC industry as a whole.

Iyer summarized his enthusiasm in a blog post: “KKR is an ideal new strategic partner with the experience and resources to help us achieve our potential as a standalone business. They are one of the most active investors focused on building leading global technology enterprises. Most importantly, KKR believes in the unique value that our technology delivers to our large and loyal customer base, and they are eager to invest in our mission to become an even more innovative and customer-centric organization.”

Our team at Tech Orchard is very excited to see this transaction completed smoothly and in a timely manner, as it is projected to close sometime this year. Though there are many questions that have yet to be answered, we will continue to keep you apprised of changes in support of our commitment to provide clients with the best service and support in the industry. More to follow!