Softcat plans £350m equity raise to fund US acquisition

Softcat PLC, a UK-based IT services firm, has announced plans to raise £350 million through an equity issue in order to fund its acquisition of General Datatech, L.P., a US-based IT solutions provider. The acquisition, valued at around $1.05 billion, is expected to close by the end of Q1 2027, pending regulatory approvals. The equity issue will be split into two parts: a non-preemptive placing to institutional investors and a retail offer via RetailBook for UK retail investors.

J.P. Morgan Securities, Peel Hunt LLP, and BNP PARIBAS will act as joint bookrunners for the placing. Softcat anticipates that the acquisition will result in high single-digit to low double-digit EPS accretion in the first full fiscal year post-deal. The company's net debt leverage at closing is expected to be around 1.3 times, with a forecast of below 1.0 times by July 2028, aligning with a new target leverage range of 0.5-1.0 times.

Peter Kelly, who controls approximately 33% of voting rights, plans to participate in the placing on a pro-rata basis, subject to ownership threshold limitations. The shares offered in the placing and retail offer are not expected to exceed 10% of the company's current issued share capital. Trading on the London Stock Exchange's Main Market is anticipated to begin on or around September 22, 2026.