(Bloomberg) -- KKR & Co. has agreed to buy a software business from Broadcom Inc. in a transaction worth about $4 billion. 

Broadcom is selling its so-called end-user computer unit, which it inherited as part of its $61 billion acquisition of software maker VMware Inc. in 2023, according to a statement Monday, confirming an earlier Bloomberg News report. The business provides software enabling users to access desktops and applications remotely.

KKR plans to expand the company’s research and development and pursue new partnerships, according to the statement. It will continue to be run management led by Shankar Iyer. It will also participate in KKR’s employee-ownership program, which gives equity to workers. 

“We see great potential to grow the EUC Division by empowering this talented team and investing in product innovation, delivering excellence for customers and building strategic partnerships,” KKR Managing Director Bradley Brown said in a statement. 

EQT AB and Thoma Bravo were also among the private equity firms interested in acquiring the Broadcom unit, Bloomberg News previously reported.

San Jose-based Broadcom has outlined plans to divest a second VMware asset it deemed as non-core. The other is a security software business called Carbon Black, which Bloomberg News reported could be valued at about $1 billion including debt.

Broadcom completed its takeover of VMware in November following an unexpectedly long 18-month process that culminated in regulatory approval from China. Broadcom Chief Executive Officer Hock Tan will use the deal to build a bigger foothold in so-called hybrid cloud services, which cater to businesses that store data both in their own facilities and outside server farms.

Citigroup Inc. advised Broadcom on the deal while KKR’s advisers included Evercore Inc., Deutsche Bank AG and Jefferies Financial Group Inc. 

(Updates with details from statement throughout)

©2024 Bloomberg L.P.