Broadcom Nears Sale Of VMware-Acquired Software Division To KKR In Strategic Shift Towards Cloud Services: Report
Portfolio Pulse from Anusuya Lahiri
Broadcom Inc (NASDAQ:AVGO) is reportedly nearing a deal to sell a software division acquired through its VMware takeover to KKR & Co (NYSE:KKR) for about $4 billion. The sale, expected to be announced on Monday, is part of Broadcom's strategic shift towards cloud services. The division specializes in software for remote desktop and application access. Broadcom is also looking to sell another VMware asset, Carbon Black, for around $1 billion. This move follows Broadcom's acquisition of VMware in November after an 18-month regulatory review.
February 26, 2024 | 12:01 pm
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Broadcom Inc is finalizing the sale of a VMware-acquired software division to KKR for approximately $4 billion, indicating a strategic shift towards cloud services.
The sale of the VMware-acquired software division to KKR for about $4 billion reflects Broadcom's strategic realignment towards cloud services, which could positively impact investor sentiment and AVGO's stock price in the short term. The divestiture of non-core assets to focus on high-growth areas is generally viewed positively by the market.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
KKR & Co is close to acquiring a software division from Broadcom Inc, specialized in remote desktop and application access software, for approximately $4 billion.
KKR's acquisition of the software division from Broadcom for around $4 billion is likely to be viewed positively, as it expands KKR's technology portfolio and aligns with its history of significant tech sector investments. This strategic acquisition could enhance KKR's position in the technology sector, potentially leading to a positive short-term impact on its stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80