17th Sep 2026 17:51
(Alliance News) - Softcat PLC on Thursday delivered an upbeat trading update as it announced a GBP350 million fundraise to help fund the USD1.05 billion purchase of GDT Topco LP.
The Marlow, England-based provider of IT infrastructure products said the acquisition of GDT, a Texas-based, multi-vendor IT solutions provider, brings "meaningful scale" and an established "upper mid-market and enterprise customer base in a large and growing US market."
Chief Executive Graham Charlton called it a "very exciting moment" for Softcat.
"GDT is a high-quality business with deep technical capability, strong customer and vendor relationships, and a culture centred on people and customer service that is closely aligned to our own. The acquisition, which we're executing from a position of strength, significantly accelerates our capability in the US and enhances the support we can offer to large and complex customers with multinational needs, particularly across networking, data centre, AI infrastructure and cybersecurity solutions."
Softcat expects the acquisition to deliver in the range of high single-digit to low double-digit underlying earnings per share accretion in the first full fiscal year with modest financial leverage.
The firm estimates net debt leverage of 1.3 times at closing and forecast leverage to be below 1.0x by July 2028, in line with new target leverage range of 0.5x to 1.0x.
The deal is expected to close by the end of the first quarter of financial 2027, subject to customary regulatory filings and approvals.
The purchase will be funded through a combination of cash, GBP100 million, new debt facilities comprising a GBP100 million term loan and GBP450 million revolving credit facility, and proceeds from an equity fundraise.
Softcat plans to raise GBP350 million through a placing, the price of which will be determined at the close of an accelerated bookbuild. A retail offer was also announced.
In addition, Softcat updated on trading and said it now expects to deliver high-teens growth in full year underlying operating profit, up from mid-teens previously, with gross profit growth moderately above this.
The group expects full-year cash conversion to be towards the top end of the guided range of 85% to 95%.
Looking ahead, and excluding the contribution from GDT, Softcat expects to deliver high single-digit underlying operating profit growth in financial 2027.
Softcat's full-year results are scheduled for release on October 14. Its financial year runs to the end of July.
The deal and trading update were announced after the London equity market close on Thursday. Shares in Softcat had closed up 2.7% at 1,968.00 pence.
By Jeremy Cutler, Alliance News reporter
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