On February 26, 2024, Broadcom announced that the global investment firm KKR has entered into a definitive agreement to acquire the End-User Computing Division (EUC) Division from Broadcom.
On November 22, 2023, Broadcom completed its acquisition of VMware. As part of the acquisition, Broadcom organized End-User Computing (EUC) (including Workspace ONE & Horizon) as an independent business division under Broadcom and already communicated an intent to sell EUC to an external party.
Precise timelines to close the deal will be identified in the weeks ahead, but there are a few points of emphasis to highlight:
- EUC will operate as a stand-alone company with an ongoing commitment to providing our customers best-in-class products and services.
- KKR will support EUC with long-term investments enhancing customer success and partner support.
What are the reasons behind Broadcom selling its End-User Computing Division (EUC) to KKR?
The acquisition marks a strategic shift for VMware’s EUC division, offering it a fresh start and renewed focus on innovation and growth. With KKR’s backing, the division is poised to explore new opportunities and enhance its offerings in the rapidly evolving landscape of end-user computing solutions.
Broadcom’s decision to divest its EUC division aligns with its broader strategic objectives, allowing it to streamline its portfolio and concentrate on core areas of focus. Meanwhile, KKR’s investment underscores the potential it sees in VMware’s EUC business, recognizing its value and growth prospects in the market.
This transition brings with it exciting possibilities for VMware’s EUC division. By operating as a standalone entity, it gains agility and autonomy to pursue new partnerships, develop cutting-edge technologies, and better serve its customers’ evolving needs.
For customers and partners of VMware’s EUC solutions, this acquisition represents continuity and a commitment to delivering top-notch products and services. With KKR’s support, the division is well-positioned to drive innovation, accelerate product development, and continue providing exceptional user experiences in the digital workspace.
Which products are affected?
The acquisition primarily impacts products and services within VMware’s End-User Computing (EUC) division. This includes solutions such as VMware Horizon, Workspace ONE, and related offerings focused on digital workspace and end-user computing.
How does this affect my existing licenses?
Existing licenses and support agreements for VMware’s EUC products should remain valid and unaffected by the acquisition. Customers can expect continued support and maintenance for their current deployments as well as access to future updates and enhancements.
Will there be any changes to product roadmap or support?
While specific details regarding the product roadmap and support policies may evolve over time, VMware is committed to ensuring minimal disruption for its customers and partners. Any updates or changes will be communicated transparently, and efforts will be made to prioritize customer satisfaction and product excellence.
What benefits can customers expect from this acquisition?
Customers can anticipate continued innovation, enhanced product offerings, and dedicated support from VMware’s EUC division under KKR’s ownership. The acquisition opens up new avenues for investment, partnership, and growth, ultimately benefiting customers by delivering cutting-edge solutions and exceptional user experiences.
How will this affect ongoing partnerships and collaborations?
VMware remains committed to its partnerships and collaborations within the EUC ecosystem. The acquisition by KKR is expected to strengthen VMware’s position in the market, fostering deeper relationships with partners and driving collaborative efforts to address evolving customer needs.
Overall, the acquisition marks a pivotal moment for VMware’s EUC division, signaling a new chapter filled with opportunities for growth, expansion, and continued success in the dynamic realm of end-user computing. As the division embraces its future under KKR’s ownership, stakeholders can anticipate exciting developments and enhanced offerings that cater to the evolving needs of the modern workforce.
More information
More information can be found on the VMware EUC blog here: https://blogs.vmware.com/euc/2024/02/broadcoms-euc-division-embraces-its-future-as-a-standalone-business.html
Additionally, KKR’s press release on the acquisition can be found here: https://media.kkr.com/news-details/?news_id=48701629-ae4d-4d88-b1a9-90a438c6bf6c.
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