Softcat expands across the Pond with £785m tech deal

By the Editorial Team · Friday, September 18, 2026

Softcat has agreed to acquire Dallas-based networking reseller GDT for £785 million to expand its US presence and strengthen its networking hardware capabilities vital for AI infrastructure. This acquisition will enhance Softcat’s scale in the US market, support multinational clients with complex needs, and follows a recent profit upgrade amid strong company performance.

Softcat, one of the United Kingdom’s leading technology resellers, has agreed to acquire Dallas-based networking specialist GDT for £785 million as it expands its presence in the United States. The deal, expected to close in the first quarter of Softcat’s 2027 financial year, aims to bolster the company’s capabilities in networking hardware—an essential component of artificial intelligence infrastructure.

GDT, a value-added reseller focused on networking equipment, serves nearly 700 upper mid-market and enterprise clients and maintains strong partnerships with major vendors such as Cisco and Nvidia. These companies have experienced high demand for their networking products amid rapid growth in AI infrastructure development. Industry analyses predict the networking equipment market could grow by approximately 40% annually through the end of the decade.

Softcat’s acquisition of GDT will significantly increase its scale in the US, where it has previously maintained a relatively modest footprint. “GDT is a high-quality business with deep technical capability, strong customer and vendor relationships,” Softcat CEO Graham Charlton said, emphasizing that the transaction will accelerate the company’s US growth and enhance support for multinational customers with complex requirements.

This transaction marks Softcat’s second acquisition, following its 2025 purchase of Oakland, a data and digital consulting firm. Funding for the deal will come from a combination of cash, new debt facilities, and an equity placing. Softcat has secured £550 million in new debt from existing lenders and plans to finance £100 million of the transaction cost from its balance sheet. Additionally, the company will undertake an equity placing worth £350 million, expected to represent less than 10% of its share capital.

Following the acquisition, Softcat’s net debt is projected to rise to 1.3 times its annual operating profit, but the company anticipates reducing this to a target range of 0.5 to 1.0 times by July 2028.

Alongside the announcement, Softcat upgraded its full-year profit guidance for the third time in six months after strong performance in the final quarter. The board now expects underlying operating profit growth in the high teens, an increase from the mid-teens previously forecast. The company’s shares rebounded strongly after declining roughly 20% during the software sector sell-off early this year and are currently trading over 40% higher.

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