Softcat acquires GDT in $1.05 billion deal

Softcat, the UK's largest IT solutions provider, has announced the acquisition of GDT, a Dallas-based company focused on data center and networking, in an enterprise value deal worth $1.05 billion. The transaction creates a transatlantic channel powerhouse, combining the resources of both companies to serve global clients seeking AI support and technology implementation.

Changes to Softcat's Structure

The acquisition brings together 2,800 Softcat employees and 900 from GDT, totaling 3,700 staff. GDT will retain its name, leadership team, and workforce, operating as a wholly-owned subsidiary of Softcat.

Funding the Acquisition

The deal will be financed by a combination of cash on Softcat's balance sheet (£100 million), new credit facilities (£550 million), and an equity raise of £350 million, representing less than 10% of issued share capital.

Impact on Customers and the Market

GDT states that the acquisition creates a “leading transatlantic solutions platform” that will enable it to meet international requirements and offer growth opportunities in both companies' markets. Customers will gain expanded global support and access to deep technical resources, including the expansion of the Global Operations Center in Bangalore.

Expected Closing

The closing of the deal is expected by the end of the first quarter of 2027, subject to regulatory approvals and due diligence.

Leadership Reaction

Graham Charlton, Softcat's CEO, emphasized that GDT meets all criteria regarding scale, US customer base, data center capabilities, and customer-centric culture. He highlighted that the acquisition reinforces Softcat's position as a “top echelon of global capability” to serve large, complex clients.

Future Growth Expectations

GDT, with annual revenue of $1.4 billion and doubled EBITDA, aims to generate gross profit of approximately $240 million and EBITDA of $80 million in the current year. Softcat, now 40% larger than two years ago, maintains its guidance for underlying profit growth in the high single to low double digits.

With information from CRN, IT Channel Oxygen.