The Catapult Group International Ltd (ASX: CAT) share price has dipped slightly in early trade. At the time of writing, the Catapult share price is down 0.76%, trading at $1.97.
Shares in Catapult will be receiving extra attention today, after announcing a successful acquisition earlier.
Lets take a look at what Catapult announced and why investors will be watching.
Catapult acquires SBG Sports
Earlier today, Catapult announced that the company has completed the acquisition of SBG Sports Software overnight.
Catapult noted that explicit details on the acquisition were outlined in a previous announcement.
In late June, Catapult announced that the company was considering US$40 million to US$45 million for the acquisition.
The transaction comprised of an even split between US$20 million in cash and US$20 million in deferred Catapult shares. In addition, the company noted that up to US$5 million could be issued in instalments following agreed criteria.
SBG is a global leader in video and data analysis solutions. After pioneering software development and data analysis in the motorsports industry, the company has since expanded into traditional sports. SBG offers a suite of products to help coaches break down factors driving team performance and reduce weekly workflow times.
According to Catapult, the strategic acquisition will help the company accelerate growth in an unpenetrated section of its core market.
Snapshot of the Catapult share price
Catapult are world leaders in sports analytics and solutions, providing sports teams and athletes with technology that tracks and measures performance and recovery. Catapult operates three divisions; elite video, wearables, and prosumer.
The Catapult share price has been rather flat during 2021, bouncing between highs of $2.30 and $1.60. With competitive sports resuming, the company has seen a steady pickup in revenue growth as reported in its FY21 results.
Following the intention to acquire SBG, Catapult launched a $57 million capital raising in late June. The company was able to raise $35 million via an underwritten institutional placement of new shares at a price of $1.90.
At the time of writing, shares in Catapult have dipped slightly in early trade as investors digest the news.
