H.I.G. Capital Sells IT Solutions Provider GDT to Softcat for $1.05B
Event summary
- H.I.G. Capital agreed to sell General Datatech (GDT) to Softcat for $1.05B enterprise value.
- GDT's EBITDA doubled under H.I.G.'s ownership since 2021, with focus on hybrid cloud, AI, and cybersecurity.
- Transaction expected to close by Q1 2027, subject to customary closing conditions.
- GDT expanded globally with a Bangalore center of excellence and increased recurring revenue mix.
The big picture
This sale marks a successful exit for H.I.G. Capital after significantly transforming GDT's business model and financial performance. The deal reflects ongoing consolidation in the IT services sector, as larger players seek to bolster their capabilities in cloud, AI, and cybersecurity. Softcat's acquisition aligns with broader industry trends of enterprise IT modernization and the growing demand for comprehensive, secure infrastructure solutions.
What we're watching
- Integration Strategy
- How Softcat will integrate GDT's capabilities into its existing operations, particularly in high-growth areas like AI and cybersecurity.
- Market Positioning
- Whether GDT can maintain its momentum under new ownership amid competitive IT services landscape.
- Execution Risk
- The pace at which Softcat can capitalize on GDT's global delivery platform and enterprise customer base.
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