Catapult Sports (CAT) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands leadership in athlete monitoring by integrating gym-based computer vision and AI with on-field performance health offerings, creating a comprehensive sports technology solution.

• Enables a unified athlete performance system, combining strength data from the gym with field-based metrics for a seamless training ecosystem.

• High overlap in customer base and decision makers, facilitating cross-selling and product integration.

• Accelerates the mission to deliver end-to-end solutions for professional sports teams and enhances AI capabilities.

• Opportunity to scale Perch’s product globally, leveraging established go-to-market reach.

Financial terms and conditions

• Total consideration is US$18 million: US$3 million cash at closing, remainder in shares issued in four tranches with lockup periods.

• Perch shareholders eligible for up to US$10 million in earn-out shares from June 2027 to May 2028, contingent on ACV growth milestones.

• Perch’s ACV is approximately $2.5 million, with contract sizes ranging from $5,000 to hundreds of thousands depending on client tier.

• Acquisition funded entirely from existing cash reserves; no capital raise required.

• Perch is profitable and accretive to Rule of 40 metrics, performing slightly better than the acquirer’s current 30% level.

Synergies and expected cost savings

• Integration enables teams to access both gym and on-field performance data in a single platform, reducing manual data collection and improving decision-making speed.

• High synergy potential due to minimal customer overlap and similar buyer profiles.

• Cross-selling opportunities expected as sales teams can offer Perch’s product to existing clients.

• Leverages Perch's computer vision algorithms trained on over 25 million reps from 40,000+ users, enhancing analytics depth.

• Innovation synergies anticipated by combining in-house technology and Perch’s expertise in computer vision and AI.