Transforming Softcat into a leading global IT solutions business

Combined funding

by accelerated equity issuance and new debt facilities

US$1,050mn

enterprise value

One of the most significant

cross-border technology transactions by a UK-listed company in 2026

Transaction overview

On 17 September 2026, FTSE-250 listed Softcat plc announced the acquisition of General Datatech, a leading US-based multi-vendor technology solutions provider with deep capabilities in networking and data centre solutions, from sellers affiliated with H.I.G. Capital for an enterprise value of US$1,050 mn (£785 mn).

The purchase price was funded through a combination of £100 mn of cash on balance sheet, new debt facilities comprising a £100 mn term loan and £450 mn revolving credit facility (RCF), and net proceeds from a £350 mn equity issuance.

The £350 mn equity issuance was executed through a fully underwritten placing and concurrent retail offer to existing and new investors. The placing was successfully executed over a one-day accelerated bookbuild (ABB) process, with new shares representing c. 9.5% of the existing issued share capital being allotted.

Completion is expected to occur by the end of Q1 2027, subject to regulatory clearances and customary closing conditions. The acquisition is expected to be EPS accretive in the first full fiscal year with modest financial leverage.

Strategic rationale

01	As one of the most significant cross-border technology transactions by a UK-listed company this year, the acquisition will transform Softcat from a predominantly UK and Ireland-focused business into a leading transatlantic IT solutions business.
02	The deal brings together highly complementary product and services capabilities, creating a globally relevant and competitive offering that can serve the complex and critical IT infrastructure needs of tomorrow.
03	The combined customer base will benefit both from GDT’s US enterprise scale and partnerships with key technology vendors, including Cisco, NetApp and NVIDIA, and from Softcat’s broader technology and services proposition, such as cloud, cybersecurity and multi-domain services.
04	GDT's established presence in Bengaluru, with a team of around 230 people, will provide Softcat with access to a mature and scalable platform for engineering talent, enhanced service delivery and business operations capability.

What value did we bring?

Successfully executing the acquisition with a fully underwritten equity issue and "certain funds" debt facility

Nearly half of the purchase price was funded by the placing of newly issued shares over a one-day ABB process and concurrent retail offer.

This issuance was completed using Softcat’s existing authority to issue non-preemptively up to 10% of its share capital, illustrating a replicable path to M&A execution for other PLCs.

Our advice included the negotiation of fully underwritten terms for the placing, which was a novel arrangement for an ABB fundraise but necessary for Softcat in order to provide certainty of funding for the acquisition. We also advised Softcat in obtaining significant new “certain funds” debt facilities with its relationship lenders, comprising a £100 million term loan and £450 million RCF.

Coordinating a fast-paced multi-faceted transaction

This multi-faceted transaction was executed within an extremely short timeframe, subject to regulatory clearances and customary closing conditions.

Our role included advising Softcat in relation to the applicable Listing Rule requirements under the “significant transaction” and “related party transaction” regimes, given the size of the deal and the involvement of its substantial shareholder. As international deal counsel, we led across the various workstreams in conjunction with US, Indian and other local counsel.

Managing structural complexity

We successfully delivered the synchronised execution of the different funding elements and the acquisition on 17 September 2026. To achieve this outcome, we had to navigate the complex acquisition structure of the target group and assist with a pre-closing reorganisation of the Softcat group.

The placing was conducted using a Jersey “cashbox” structure, in order to support further structural benefits from the Softcat group.

Trusted adviser to Softcat

Our relationship with Softcat has included advising on its acquisition of Oakland Group Services, a specialist provider of data and AI consultancy services. We then supported Softcat on its debut RCF in March 2026.

The acquisition of GDT will therefore represent Softcat’s second acquisition, and provides Softcat with a North American business to support its international growth strategy. We are pleased to be advisers to Softcat throughout these key stages of its continuing growth story.