Catapult (ASX:CAT) share price lower despite announcing a new acquisition

The Catapult Group International Ltd (ASX:CAT) share price is edging lower on Tuesday despite announcing a new acquisition…

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The Catapult Group International Ltd (ASX: CAT) share price is trading lower on Tuesday after announcing an acquisition.

At the time of writing, the sports analytics and wearables company's shares are down 1% to $2.07.

What did Catapult announce?

This morning Catapult announced the acquisition of subscription online sport learning platform, Science for Sport.

According to the release, Science for Sport was founded in 2016 and has grown into the number one source for content, online courses, and community engagement in the global sports science industry.

It has built an organic social audience of hundreds of thousands of followers, becoming one of the most-trusted sources of information for sport practitioners around the world.

The release explains that the platform empowers athletes and teams with easy to consume answers to their performance-related questions, addressing key sports issues such as athlete agility, mitigation of soft tissue injuries, and enhanced recovery methods.

What else does Science for Sport offer?

Science for Sport has two core paid products. The first is an online magazine that summarises the latest sports science research into relatable and applicable content.

The second is a library of educational courses focused on topics such as nutrition, coaching, and performance, with thousands of members around the globe.

Management notes that through its dedicated focus to advance the sports science industry, it has built a community where knowledge, best practices, and world-class research and content is shared, while generating positive free cash flow.

Catapult began partnering with Science for Sport at the beginning of this year. It notes that it has been extremely impressed with the reach, engagement, and influence of the platform.

As such, management believes this acquisition will accelerate Catapult's development of its professional service solutions by providing professional and amateur customers with advanced training and education through industry-leading content and online courses.

Catapult's Chief Executive Officer, Will Lopes, commented: "Science for Sport has built the pre-eminent content platform and community for the fast-growing, intelligent, and influential world of sports science."

"We are excited at the prospect of growing Science for Sport's content and helping its audience learn how technology solutions can accelerate performance of teams and athletes. This strategic acquisition will help us, and the sports technology industry, to scale even faster," he added.

No details were provided in relation to how much Catapult paid for the acquisition.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Catapult Group International Ltd. The Motley Fool Australia has recommended Catapult Group International Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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