Softcat PLC announced plans to acquire US IT solutions provider General Datatech for an enterprise value of approximately $1.05 billion (£785 million), funding the deal in part with a £350 million equity raise.
The company said it will raise the capital through a non-pre-emptive placing to institutional investors, supplemented by a retail offer via RetailBook for UK retail investors. Company directors may subscribe up to approximately £235,000, though they are currently restricted under UK Market Abuse Regulation from doing so until after the preliminary results on October 14, 2026, at which point they intend to subscribe at the placing price.
J.P. Morgan Securities plc, Peel Hunt LLP and BNP Paribas are acting as joint bookrunners. The bookbuild launched immediately following the announcement on Wednesday, with the placing price and share count to be determined upon its completion. Shares issued under the placing and retail offer are not expected to exceed 10% of Softcat's current issued share capital.
General Datatech provides multi-vendor IT solutions to upper mid-market and enterprise customers in the United States. Admission to trading on the London Stock Exchange's Main Market is expected around September 22, 2026, with the transaction anticipated to close by the end of Q1 2027, subject to regulatory approvals.
Softcat expects the acquisition to deliver high single-digit to low double-digit underlying earnings per share accretion in its first full fiscal year. Net debt leverage is estimated at 1.3 times at closing, with the company forecasting a drop below 1.0 times by July 2028, aligning with a new target leverage range of 0.5 to 1.0 times.
Major stakeholder Peter Kelly and his concert party, who hold approximately 33% of voting rights, stated their intention to participate in the placing on a pro rata basis, subject to certain ownership threshold limitations.
