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Why Broadcom Sold VMware’s End-User Computing Business to KKR

Broadcom’s sale of VMware’s end-user computing division was a strategic carve-out, not proof that Horizon or Workspace ONE had failed. The business became Omnissa under KKR.
From TheFinanceBase Team6 min to read
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Broadcom completed its VMware acquisition on November 22, 2023, announced the sale of VMware’s end-user computing (EUC) division about two weeks later, and closed the transaction on July 1, 2024. KKR acquired the business, which became Omnissa.

The move was primarily a portfolio decision—not a public declaration that Horizon or Workspace ONE had failed. Broadcom wanted a more concentrated infrastructure-software company, while KKR saw value in operating EUC as a dedicated digital-workspace business. Broadcom later reported $3.5 billion in cash consideration after working-capital adjustments, and used sale proceeds to help repay acquisition-related borrowing.

What Broadcom actually sold

The transaction covered VMware’s end-user and digital-workspace operations, including:

  • VMware Horizon, for virtual desktops and applications.
  • Workspace ONE, for unified endpoint management and digital-workspace services.
  • Associated EUC sales, engineering, support and customer functions.

The business was separated from Broadcom and rebranded Omnissa under KKR ownership. Broadcom did not sell all of VMware. It retained the infrastructure portfolio supporting its private-cloud and hybrid-cloud strategy.

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Omnissa’s brand announcement is available at VMware’s EUC blog.

The timeline shows this was planned

Event Date or amount
Broadcom completed VMware acquisition November 22, 2023
Broadcom announced EUC divestiture December 7, 2023
KKR agreement announced February 26, 2024
Announced transaction value Approximately $4 billion
Sale completed July 1, 2024
Broadcom-reported cash consideration $3.5 billion after working-capital adjustments

Because the divestiture announcement followed the acquisition by roughly two weeks, the timing indicates that EUC was identified for separation as part of Broadcom’s acquisition and integration plan, rather than being sold only after disappointing post-acquisition results.

Broadcom wanted infrastructure software, not every VMware business

Broadcom has described its VMware strategy as centered on infrastructure software and a comprehensive private-cloud platform. The retained direction includes VMware Cloud Foundation, vSphere-related infrastructure, private cloud, hybrid cloud and infrastructure management.

EUC serves a different layer: employees’ desktops, applications, devices and digital experiences. It has different buyers, competitors, sales motions and product priorities from core data-center and cloud infrastructure. Broadcom said in an SEC filing that EUC and certain related assets were “not aligned with our strategic objectives.” See the 2024 Broadcom annual filing.

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Separating EUC therefore simplified the VMware portfolio and reduced the management effort required to integrate a business outside Broadcom’s preferred category. Broadcom’s description of its VMware transformation is set out in its business-transformation announcement.

Was EUC a failing business?

Public statements do not establish that EUC was financially distressed. VMware EUC leadership described the division as having “healthy growth and profitability,” while KKR characterized it as a leading digital-workspace business. Those are company statements, not independently audited performance figures for the division.

The available evidence supports a more precise conclusion: EUC could be valuable and profitable while still being non-core to Broadcom. A business may command a substantial price from a buyer that can focus on it, yet consume management attention or dilute the strategy of its current owner.

Broadcom’s filings treated EUC as discontinued operations and described the assets in strategic, rather than operationally negative, terms. That distinction matters when interpreting the word “offloading.”

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The financial logic: cash and lower acquisition leverage

KKR announced an approximately $4 billion transaction value. Broadcom later reported $3.5 billion of cash consideration after working-capital adjustments in its SEC filing. These figures refer to different transaction measures and stages, so they should not be treated as contradictory.

Broadcom financed the VMware acquisition with a combination of cash and borrowing. It said proceeds from the EUC sale, together with other financing and cash, helped repay borrowing connected with the acquisition. The sale thus supported capital management as well as strategic focus; debt reduction was not necessarily the sole reason for the transaction.

Broadcom’s filing describing the cash proceeds is available at SEC filing AVGO-20240804.

Why KKR was a logical buyer

KKR could own EUC as a focused digital-workspace company rather than as a secondary division inside an infrastructure-software group. That structure gives Omnissa dedicated management accountability and a clearer investment thesis around desktops, applications, endpoint management and employee experience.

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KKR’s announcement described the business as serving applications, desktops and data across devices and platforms and valued the transaction at approximately $4 billion. It did not guarantee particular levels of research spending, support or pricing. Those are future operating choices, not established outcomes.

Read KKR’s transaction announcement at KKR’s official release.

What changed for customers

Ownership changed, but an existing Horizon deployment did not automatically disappear on the closing date. Customers could continue using their technical environments, including Horizon running on infrastructure that Broadcom still owns. The commercial and support relationship, however, required attention.

  • Branding and legal vendor identity moved toward Omnissa.
  • Support portals, downloads and hosted systems were separated.
  • Contracts, entitlements, renewal terms and license metrics may differ by customer, product, geography and date.
  • Broadcom documented a transition from VMware-hosted systems to Omnissa-hosted systems in May 2024.
  • Broadcom later said it had no material continuing involvement, although it provided short-term transitional services.

The systems transition was documented in Broadcom’s support article. Its later filing on transitional services is at SEC filing AVGO-20250202.

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Do not confuse the sale with VMware’s licensing changes

Broadcom also ended sales of VMware perpetual licenses and moved much of the broader portfolio toward subscription or term licensing. That was a separate, company-wide commercial change. The acquisition, the licensing and channel changes, and the EUC sale overlapped in time but were not the same event.

Customer complaints about VMware pricing or renewals therefore cannot automatically be attributed to the EUC divestiture. A Horizon customer should examine the specific Omnissa contract and the separate rights to any Broadcom-owned VMware infrastructure.

What customers should check

  1. Identify the legal vendor. Check whether the current agreement, invoice and renewal quote name Omnissa or Broadcom.
  2. Verify entitlements. Confirm Horizon and Workspace ONE licenses, user metrics, editions and renewal dates.
  3. Use the correct support systems. Confirm the applicable support portal, download location and escalation path with the reseller or vendor.
  4. Map technical dependencies. Document which parts of the deployment are Omnissa products and which rely on Broadcom-owned VMware infrastructure.
  5. Review geography and compliance. Public-sector, regulated and data-residency requirements can affect support and alternative-platform choices.
  6. Compare economics before migrating. Include application compatibility, image management, identity, infrastructure, staffing and migration work—not just the software subscription.

Customers using Horizon on Azure VMware Solution should also check the license type. Microsoft distinguishes a Horizon Subscription License from a Horizon Universal Subscription License; Microsoft says the Universal option costs more where it includes an on-premises vSphere license. Details are in Microsoft’s Horizon on Azure VMware Solution documentation.

The trade-offs for Broadcom and customers

Party Potential benefits Potential costs and risks
Broadcom Sharper infrastructure focus, fewer businesses to integrate, cash proceeds and lower acquisition-related borrowing. Loss of EUC revenue, less bundling with infrastructure and fewer cross-selling opportunities.
Customers A vendor dedicated to Horizon and Workspace ONE with clearer product ownership. Separate vendor relationships, changed portals and contracts, and less certainty about future bundling.
Omnissa Dedicated management and the ability to focus on digital-workspace products. Responsibility for preserving continuity while operating separately from VMware infrastructure.

What the sale means in 2026

As of 2026, this is a completed sale, not an ongoing divestiture. Omnissa is the former VMware EUC business under KKR ownership. The practical question for an IT buyer is no longer whether Broadcom might sell EUC, but whether Omnissa, Azure Virtual Desktop, Citrix DaaS or a hybrid arrangement best fits the organization’s applications, infrastructure, skills, compliance obligations and contract economics.

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Microsoft’s Azure Virtual Desktop information is available at the product page, with pricing at Microsoft’s pricing page. Pricing depends on Azure compute, storage, networking, region, licensing and usage, so it should not be compared with an Omnissa license alone. Citrix DaaS is described at Citrix’s official product page.

The bottom line

Broadcom sold VMware’s EUC division because it was valuable but outside the infrastructure-centered VMware business Broadcom wanted to build. KKR acquired a focused digital-workspace company, the business became Omnissa, and Broadcom received cash that helped reduce acquisition-related borrowing. For customers, the ownership change created new commercial and support considerations, but it did not by itself require an immediate technical migration.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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