Catapult Sports Ltd

ASX:CAT

Catapult Sports Ltd

ASX:CAT
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Reports (14) My Report Forum Investors
Forum Topics CAT CAT Perch Acquisition

Pinned straw:
Strawman
Added 6 months ago

So this probably explains why Will had to postpone our meeting this week.

Catapult will be acquiring Perch, a U.S.-based sports technology company spun out of MIT. It provides AI-driven, computer vision tools for real-time strength training monitoring in gyms, using a small 3D camera mounted on weight racks to track athlete movement, automate data collection, and deliver actionable performance insights.

Perch has an annual contract value (ACV) of ~US$2.5 million and will be acquired for US$18 million (US$3M in cash and US$15M in shares, issued in four tranches through to June 2026, with various lock-up periods).

There’s also an earn-out of up to US$10 million in shares, contingent on ACV growth milestones between June 2027 and May 2028.

No capital raise is required.

Catapult reckons it will enhance its Performance & Health vertical and should be accretive to its Rule of 40 goal.

Seems like a decent tuck-in acquisition. It'll boost ACV by only 2% or so, but it will strengthen the offering, and good to see no dilution.

Full announcement here

mushroompanda
Added 6 months ago

I had ChatGPT pull all the customer logos from the Perch website this morning. ChatGPT is sooooo good.

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lastever
Added 6 months ago

Here are some notes I took for the Perch acquisition webinar just now:

Long admired this enterprise software What? Data and precision in the weight room How? Compact 3D weight rack camera Battle tested in weight rooms over a decade Turn subjective coaching into a quantifiable, personal, repeatable process. 3 mission critical areas: -Planning of workouts -Inaudible -Training athletes

Strategic acquisition

Strength training is essential Brings it out of the silo Merge with on-field metrics Athlete load and recovery We can help scale it Expand beyond North America

Analyst questions

Revenue growth and margins? Accretive to us and profitable, still fairly small. It's really about integration. We’re impressed with how they've done with rule of 40 given their size. We can help with their scale without adding costs. Split professional (and elite amateur?) 90% coming from Pro side, very similar to CAT. No incremental RnD anticipated. We're pulling in some of theirs, offset by topline. Some engineering work connecting data, but feel established in that. How was deal initiated, how arrive at pricing? We've known them for quite some time, they're neighbours in Boston. Admired them. 2 founders have similar ethos. Customer focused. We talk to companies once a week, knock on our door. Their growth strategy and cash position… The team and the founders come along with it. Innovation synergy Development or deployment beyond current use cases? Yes. Our in-house tech would benefit from how they capture with computer vision and algos. That would be longer term, first is integration.


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