In a strategic move that underscores Broadcom’s ambition to streamline its operations, the semiconductor giant is on the cusp of finalizing a sale worth approximately $3.8 billion. The deal will see its desktop and application access business transferred to the hands of private equity firm KKR. This significant shift comes in the wake of Broadcom’s colossal $69 billion acquisition of software company VMware, a merger spearheaded by Broadcom’s CEO Hock Tan aimed at refining the company’s extensive portfolio.

KKR emerged as the frontrunner in a competitive auction, outpacing other contenders such as EQT, for the purchase of Broadcom’s end-user computing (EUC) unit. Insiders suggest the announcement of the deal could come as early as Monday, though all parties involved have kept details under wraps, citing the confidentiality of the discussions.

The decision to divest the EUC unit was part of a broader strategy announced by Broadcom in December, following closely on the heels of its efforts to offload VMware’s security software division, Carbon Black. This move reflects Broadcom’s ongoing efforts to focus on its core competencies and shed non-essential assets.

KKR, with a history of significant investments in the technology sector, including the acquisition of BMC for $8.5 billion in 2018 and the subsequent purchase of Compuware from Thoma Bravo, demonstrates its continued interest in expanding its tech portfolio. The private equity firm’s acquisition of Ensono in 2021 for around $1.7 billion further attests to its strategic investment focus.

The transaction is supported by a suite of financial advisors and lenders, with Evercore, Deutsche Bank, and Jefferies guiding KKR, and Citigroup advising Broadcom. UBS Group, Jefferies, and KKR’s capital markets division are arranging the debt financing required for the deal, highlighting the significant financial orchestration behind this acquisition.