Catapult Group International Ltd (ASX: CAT) shares are catching the eye on Thursday.
In morning trade, the ASX tech stock is up almost 2% to a record high of $6.33.
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Why is this ASX tech stock rising?
Investors have been bidding the sports technology company's shares higher today after it announced a strategic acquisition that further advances its Performance & Health (P&H) vertical as the most comprehensive in sports.
According to the release, Catapult has agreed to pay US$18 million to acquire Perch (Catalyft Labs, Inc.), which is a next-generation leader in athlete monitoring in the gym for elite teams.
It was developed at the Massachusetts Institute of Technology (MIT) and combines advanced computer vision and artificial intelligence (AI) to deliver real-time, automatic tracking of athlete strength training.
The release notes that the Perch system uses a compact 3D camera that mounts to any weight rack in minutes – detecting movements, recording performance, and providing instant feedback. This allows trainers to build customised programs, assess readiness, and track progress over time – all while saving teams hours of manual data collection.
Perch currently has annualised contract value (ACV) of approximately US$2.5 million, which management believes demonstrates clear product-market fit in the professional sports market. It also believes that the deal positions Catapult to deliver the most comprehensive and versatile performance tracking solutions in the market.
The US$18 million acquisition will be funded through a mix of cash and shares, with no capital raise required.
Management commentary
Commenting on the acquisition, the ASX tech stock's CEO and managing director, Will Lopes, said:
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. 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.
Perch co-founder and CEO, Jacob Rothman, adds:
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. 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.
The Catapult share price has more than tripled over the past 12 months.
