Softcat acquires GDT and raises profit outlook for Softcat stock

Softcat agreed to acquire GDT Topco for a USD 1.05 billion enterprise value and raised its fiscal 2026 underlying operating profit outlook to the high teens from the mid teens. Investegate reported the transaction and guidance update on September 17, 2026.

GDT adds a US growth engine

The acquisition gives Softcat a US-based, multi-vendor IT solutions business with capabilities in networking, data center solutions, AI infrastructure and cybersecurity. The transaction is expected to deliver high-single-digit to low-double-digit underlying earnings per share accretion in the first full fiscal year, according to Investegate on September 17, 2026.

The funding structure is central to the investment case. Softcat plans to combine GBP 100 million of cash, GBP 550 million of new debt facilities and GBP 350 million of equity proceeds, creating a larger US platform while also expanding the share count, per Morningstar.

Leverage rises to 1.3 times

Softcat expects net debt leverage to reach 1.3 times when the acquisition closes, compared with a net cash position at the end of fiscal 2026. Management expects leverage to fall below 1.0 times by July 2028, within a target range of 0.5 to 1.0 times, according to Investegate. The figures make execution and cash generation important counterweights to the expected earnings benefit.

Results arrive October 14

Softcat expects fiscal 2026 cash conversion toward the top of its 85 percent to 95 percent guided range, while excluding GDT it expects high-single-digit underlying operating profit growth in fiscal 2027. The company scheduled its fiscal 2026 preliminary results for October 14, 2026, as stated by Investegate.

Execution now sets the valuation debate

Softcat's updated outlook combines high-teens operating profit growth with a USD 1.05 billion acquisition and a planned increase in leverage to 1.3 times. The October 14, 2026 results will provide the next dated evidence on trading, cash conversion and the integration path.