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Groupe Catapulte International Ltée (ASX: CAT) The shares are blocked this morning following the announcement by the company of a new acquisition and a capital increase.
Catapult’s share price closed yesterday’s session up 6.3% at $ 2.18. Let’s take a look at what the company announced this morning.
Frozen Catapult Actions
Catapult shares are not going anywhere on Wednesday after the company said it was undergoing a $ 57 million capital raise at $ 1.90 per share. Funds are raised for the acquisition of SBG Sports Software Limited, a global leader in video and data analysis solutions for elite sports teams and motorsports.
Under the terms of the acquisition, Catapult will spend $ 20 million in cash and $ 20 to 25 million in new Catapult shares to purchase the company.
Catapult believes that integrating video data solutions will accelerate its growth in an unpenetrated part of its core market.
What does SBG do?
SBG started as a software developer to support data analysis, visualization and video capture for the motorsport industry.
The company has a number of prominent partners including Mercedes, BMW, Porsche and Audi. SBG provides solutions that help its customers make faster, more accurate and consistent decisions on the race track.
SBG has since expanded into traditional sports, with a suite of products to help coaches break down the factors that drive team performance and reduce weekly work times.
The company has seen a “remarkably rapid adoption” of its technology in European football leagues, with 70% of the English Premier League using at least one product in the past four years and 38% of the German football league using at least one product. least one product within two years of entering the market.
From a financial perspective, SBG’s revenue grew 28% in FY21, with 100% of revenue coming from subscription.
Catapult is confident that the acquisition of SBG will boost its continued growth in annual contract value (ACV) in the short to medium term.
Through the fundraiser, Catapult also announced its intention to allocate $ 17 million to expand its capabilities in technology, product and data science.
According to the presentation of the capital increase, the company is confident in its long-term strategy to expand its LCA to 10 times its current size.
Catapult share price overview
Excluding the March 2020 massive sell-off, Catapult’s share price has been largely between highs of $ 2.20 and lows of $ 1.60 since November 2019.
The company has been hit hard by COVID-19 lockdowns as the competitive sports industry abruptly came to a halt. However, Catapult has seen a slow recovery in revenue growth, as evidenced by its results for fiscal year 21.
Catapult stock is expected to resume trading by Thursday, June 24.