Softcat raises £354 million in equity issue to support GDT acquisition
Softcat has completed an equity issue that brings in gross proceeds of about £354 million through the sale of new ordinary shares. The company says the net proceeds are intended to part-fund its acquisition of GDT, which it announced yesterday.
Highlights
- Softcat raises £354 million by placing 18,518,518 new ordinary shares at 1,890 pence each to finance the acquisition of GDT Topco, L.P.
- J.P. Morgan Cazenove, Peel Hunt LLP, and BNP PARIBAS manage the equity issue, with J.P. Morgan and Peel Hunt also acting as corporate brokers.
- Strong support from existing shareholders and participation from new investors indicate robust demand for Softcat's strategic expansion in the UK technology sector.
Equity raise terms and transaction purpose
As reported by the London Stock Exchange's Regulatory News Service, Softcat says it places 18,518,518 new ordinary shares with existing institutional shareholders and other investors at 1,890 pence a share.The company states that the fundraising is carried out under the terms set out in its launch announcement released yesterday. It says the new capital is being used to help finance the planned purchase of GDT Topco, L.P.
Softcat adds that J.P. Morgan Securities plc, acting as J.P. Morgan Cazenove for its UK investment banking activities, Peel Hunt LLP and BNP PARIBAS conduct the placing. J.P. Morgan Cazenove and Peel Hunt also serve as the company's corporate brokers.
Investor support and deal implications
Chief executive Graham Charlton says the company receives strong backing from existing shareholders during the equity issue linked to the GDT acquisition. He adds that Softcat welcomes new investors and is looking forward to working with the GDT team to accelerate shared growth ambitions and create greater value for stakeholders.The fundraising gives Softcat additional financial capacity as it pursues the acquisition, while also indicating investor appetite for the transaction. For the UK technology and IT services sector, the move signals continued use of equity markets to support strategic expansion and dealmaking.
In our earlier article on the ONS revisions to UK productivity data, we covered how updated methods for measuring hours worked lifted estimated output per hour for 2009–2019 without changing GDP. The shift reflects better accounting for annual leave, sickness absence and overtime, and the ONS’s move toward a component-based approach that could influence how investors and policymakers judge the UK’s long-term growth backdrop.
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