Catapult’s $18M Perch Deal Risks Integration Challenges Amid Growth Ambitions
Catapult Group International has acquired Perch, an AI-driven athlete monitoring startup, for US$18 million, enhancing its Performance & Health vertical without raising capital. This move integrates gym-based strength data with on-field analytics, promising a more comprehensive sports technology platform.
- Acquisition of Perch for US$18 million via cash and shares
- Perch specializes in AI-powered gym athlete monitoring using 3D camera technology
- Deal includes up to US$10 million earn-out tied to growth milestones
- Strengthens Catapult’s Performance & Health vertical with integrated data
- No capital raise required; funded from existing cash reserves
Strategic Acquisition Strengthens Market Position
Catapult Group International Ltd (ASX, CAT), a global leader in sports technology, has taken a significant step to deepen its foothold in athlete performance analytics by acquiring Perch, a Massachusetts Institute of Technology (MIT)-born startup specializing in AI-driven athlete monitoring in gym environments. The US$18 million deal, funded through a combination of cash and shares with no capital raise, underscores Catapult’s commitment to expanding its Performance & Health vertical.
Perch’s technology leverages advanced computer vision and artificial intelligence to track strength training in real time using a compact 3D camera that can be mounted on any weight rack. This innovation automates data collection, providing coaches and athletes with instant feedback and detailed insights into training progress, readiness, and customized program effectiveness. With an annual contract value (ACV) of approximately US$2.5 million, Perch has already demonstrated strong product-market fit among elite professional sports teams.
Integrating On-Field and Off-Field Performance Data
By bringing Perch’s gym-based monitoring capabilities into its portfolio, Catapult aims to offer the most comprehensive athlete performance ecosystem available. The integration of weight room data with on-field performance analytics enables teams to make faster, more informed decisions through a unified platform, eliminating the need to toggle between disparate systems. This holistic approach is expected to enhance training outcomes and injury prevention strategies.
Catapult CEO Will Lopes emphasized the shared vision between the two companies to empower athletes through cutting-edge technology. He highlighted that the acquisition not only accelerates Catapult’s AI capabilities, leveraging algorithms trained on over 25 million repetitions from more than 40,000 users worldwide, but also strengthens the company’s financial profile, being accretive to its Rule of 40 metric.
Deal Structure and Future Growth Potential
The acquisition was completed on June 4, 2025, with US$3 million paid in cash from Catapult’s existing reserves and the remainder issued as fully paid ordinary shares in four tranches, subject to lockup periods. Additionally, Perch shareholders are eligible for an earn-out of up to US$10 million in shares, contingent on achieving key ACV growth milestones between June 2027 and May 2028. This structure aligns incentives and underscores confidence in Perch’s growth trajectory.
Jacob Rothman, Perch’s CEO and co-founder, expressed enthusiasm about joining forces with Catapult, noting the opportunity to create a more complete picture of athlete development by connecting gym training data with on-field performance insights. This partnership is poised to accelerate innovation and impact in professional sports technology.
Catapult’s acquisition of Perch positions the company to lead the market in delivering versatile, AI-powered athlete monitoring solutions that span the full spectrum of training environments. Investors will be watching closely to see how effectively the integration unfolds and how it translates into revenue growth and market share gains.
Bottom Line?
Catapult’s acquisition of Perch marks a pivotal expansion in AI-driven athlete monitoring, setting the stage for a more connected and data-rich future in sports technology.
Questions in the middle?
- How quickly will Catapult integrate Perch’s technology into its existing platform?
- What are the specific ACV growth targets tied to the earn-out payments?
- How will competitors respond to Catapult’s expanded Performance & Health offering?
