Justin Sullivan
Broadcom (NASDAQ:AVGO) has paused a sale of its Carbon Black security business as the indications of interest came in below the company’s expectations.
The Carbon Black business, which could be valued at about $1 billion, came to Broadcom (AVGO) through its purchase of VMWare last year. It’s possible that Broadcom could look to sell the business at a later date, according to a Bloomberg report on Monday, which cited people familiar with the matter.
News of the stalled sales process comes after Broadcom (AVGO) earlier Monday confirmed that it agreed to sell its End-User Computing Division to private equity firm KKR & Co. (KKR) in a deal valued at ~$4B.
Business Insider first reported in late November that Broadcom (AVGO) was evaluating strategic alternatives for two business units it acquired when it purchased VMware for $69 billion. The company confirmed on its earnings call in December that it planned to divest the end-user computing and Carbon Black businesses.
VMware purchased Carbon Black for an enterprise value of $2.1 billion in 2019.
Broadcom (AVGO) is set to report its Q1 results on March 7.
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