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Sports-tech Catapult Group International (ASX: CAT) has acquired US-based athlete monitoring company Perch in a deal that could be worth up to US$28 million ($43 million) and expand the Australian company’s growth opportunities in the professional sports market.
The cash-and-scrip deal is priced at US$18 million up front, with an earn-out of up to US$10 million to be paid in Catapult shares between June 2027 and May 2028 should the business achieve prescribed ACV (annual contract value) milestones.
Perch currently has an ACV of US$2.5 million ($3.85 million), which represents the average annual revenue generated from each customer contract.
Catapult has not disclosed total annual revenue generated by Perch or how many clients it has, but the company notes that the high ACV aligns with its target market of professional sports teams globally.
Perch, the operating business of Catalyft Labs, Inc., was founded in 2016 by Jacob Rothman, Jordan Lucier and Nathan Rodman to deliver real-time, automatic tracking of strength training by athletes.
Born out of the Massachusetts Institute of Technology (MIT) and using advanced computer vision and artificial intelligence, the technology is said to “maximise every moment in the weight room to improve athletic performance”.
The Perch system records movements via a compact 3D camera that can be mounted to any weight rack to detect movements, record performance and provide instant feedback to athletes and their trainers.
“From our earliest conversations with Perch, it was clear we share a vision to empower the world’s best athletes and teams through cutting-edge technology,” says Catapult CEO Will Lopes.
“By bringing our solutions together, we’re building a smarter, more connected athlete monitoring system - on the field, in the gym, and beyond.
“The acquisition strengthens our Performance & Health vertical and accelerates our mission to deliver intuitive, end-to-end solutions for professional sports.
“Importantly, the deal is accretive to our Rule of 40 profile and reflects our disciplined approach to evaluating growth opportunities.”
The Melbourne-based Catapult Group, which has developed a range of products for professional athletes designed to optimise performance, avoid injury and improve return to play, has a client base of more than 4,600 sporting teams globally.
The company has been working alongside professional sports teams since 2006 providing wearable technology and video analysis that deliver key data to optimise player performance and avoid injury. It also assists clubs in recruiting and scouting for talent on the field.
Catapult sees the Perch acquisition as a major step towards integrating performance data across on-field and off-field environments which it says will unlock new growth opportunities.
“We started Perch to give coaches and athletes better tools to understand and improve performance in the weight room - where so much of the hard work happens,” says Rothman, Perch’s CEO.
“Joining Catapult is an exciting next chapter. Together, we’re creating a more complete picture of athlete development by connecting what happens in training with what happens on the field. We’re thrilled to bring this vision to life with a company that shares our passion for innovation and impact.”
Catapult says Perch will strengthen its ability to deliver “the most comprehensive and diverse athlete training ecosystem - combining cutting-edge camera-based systems with the deepest strength training and athlete readiness analytics in the market”.
“The acquisition also accelerates Catapult’s AI capabilities, leveraging computer vision algorithms trained on over 25 million reps from more than 40,000 unique users worldwide,” says the company.
Catapult is funding the US$3 million ($4.6 million) cash component of the acquisition from existing cash reserves, with the remainder to be paid with Catapult shares in four tranches over the next year.
The acquisition follows a strong FY25 performance by Catapult for the year to the end of March which saw the company post a 19 per cent increase in revenue to US$116.5 million ($185 million).
Improved margins, a surge in recurring revenue and a loyal base of professional sports teams using its technology led to a near halving of the annual net loss after tax to US$8.8 million ($13.5 million) in FY25, from a US$16.7 million ($25.7 million) loss in FY24.
Notably, the company also topped US$100 million in ACV, which Catapult says is the clearest sign of long-term SaaS (software-as-a-service) growth.
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