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…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Share Fallers

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Evolution Mining, Karoon Energy, ResMed, and Sayona Mining shares are dropping today

These ASX shares are having a tough session. But why?

Read more »

A young woman wearing a blue and white striped t-shirt blows air from her cheeks and looks up and to the side in a sign of disappointment after the ASX shares she owns went down today
Share Fallers

Why Australian Strategic Materials, Boral, Dubber, and Macquarie Technology are falling today

These shares are having a tough hump day. But why?

Read more »

a sad gambler slumps at a casino table with hands on head and a large pile of casino chips in the foreground.
Share Fallers

'Catastrophic' risk: Why Star shares have lost 25% in 4 days

The outcome of this inquiry could determine whether Star Entertainment hits Blackjack or bust.

Read more »

A male investor erupts into a tantrum and holds his laptop above his head as though he is ready to smash it, as paper flies around him, as he expresses annoyance over so many new 52-week lows in the ASX 200 today
Share Fallers

Why Domino's, Macmahon, Star, and Zip shares are sinking today

These ASX shares are falling more than most today.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Avita Medical, NextDC, Predictive Discovery, and Star shares are tumbling today

These shares are starting the week in the red.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Avita Medical, Cettire, Domino's Pizza, and Star shares are falling today

These ASX shares are having a tough end to the week. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Avita Medical, Netwealth, Peninsula Energy, and Zip shares are sinking today

These ASX shares are having a tough session. But why?

Read more »

Scientist looking at a laptop thinking about the share price performance.
Share Fallers

Why did this ASX All Ords stock just crash 16%?

Investors are punishing this ASX All Ords stock on Thursday. But why?

Read more »