After hinting at potential M&A in its recent interim results statement, Softcat has made the first acquisition in its 32-year-history.
The UK’s largest VAR – which topped the recent Oxygen 250 – has acquired data and AI consultancy Oakland Group Services for at least £8m in cash.
Boasting 70 employees, Leeds-based Oakland generated revenues of around £10m last year. It has over 60 Microsoft certifications, according to its website.
Softcat CEO Graham Charlton departed from previous results statements by explicitly mooting potential M&A in last month’s interim results – which showed a 19% year-on-year top-line increase.
In a follow-up interview, Charlton picked out data, AI and automation as one possible M&A avenue, alongside cyber and international growth.
“If we saw something truly compelling, then we could do it,” Charlton said at the time.
In an announcement this morning, Softcat said the Oakland deal is designed to help it meet rising demand from its large and midmarket customers for expert advice and execution on their data strategies.
The £8m sum could rise further based on performance over the next three years.
“Highly successful partnership”
Oakland is an existing partner to Softcat, “with strong cultural affinity and aligned leadership values”, Softcat stressed.
“Oakland is a company with whom we have already established a robust and highly successful partnership,” Richard Wyn Griffith, Chief Commercial Officer at Softcat, stated.
“This step forward is a great progression of our relationship, and we are excited about the enhanced opportunities it will bring. We believe that combining our strengths will not only benefit our companies but also create significant value for our customers and stakeholders. Not only that, but one of the first things I really noticed in this process was Oakland’s fantastic people and culture. It’s an exceptionally exciting time for both companies and we can’t wait to get stuck in together.”
Charlton added: “Data is one of the biggest opportunities ahead of us as innovation in technology continues to shift rapidly towards a more automated and AI-driven world.
“Our customers need expert support to navigate this transition, so by combining Softcat’s market presence and broad portfolio with Oakland’s specialist capabilities, we can guide customers through every stage of this journey.
“The acquisition of Oakland delivers an immediate, strategically important addition to our portfolio of services, and most importantly brings into the Softcat family a fantastic group of people who we know well and who align closely to our culture and values.”
