How Catapult’s A$130M Raise Fuels Its Game-Changing Soccer Analytics Acquisition

• Acquisition of Impect GmbH for upfront €40M plus deferred and contingent payments up to €38M
• Fully underwritten A$130M institutional placement to fund acquisition and strengthen balance sheet
• Impect’s proprietary Packing metrics complement Catapult’s sports analytics offerings
• Transaction accretive to Catapult’s annualized contract value (ACV) growth and profitability metrics
• Share Purchase Plan targeting up to A$20M to involve existing shareholders

Strategic Acquisition to Enhance Soccer Analytics

Catapult Sports Ltd (ASX – CAT), a leader in sports analytics technology, has entered into a binding agreement to acquire Impect GmbH, a German innovator in soccer analytics. The acquisition, valued at an upfront €40 million (approximately US$46 million), includes deferred and contingent payments potentially totaling an additional €38 million over four years. Impect is renowned for its proprietary "Packing" metrics, a globally recognized standard in soccer tactical analysis, which will significantly augment Catapult’s existing platform.

Funding the Acquisition and Strengthening Financial Position

The acquisition will be funded through a fully underwritten institutional placement raising A$130 million (US$84 million), representing about 6.9% of Catapult’s current shares. Additionally, Catapult is offering a non-underwritten Share Purchase Plan (SPP) targeting up to A$20 million, inviting eligible shareholders in Australia and New Zealand to participate. Proceeds beyond the acquisition cost will bolster Catapult’s balance sheet and provide capacity for future strategic mergers and acquisitions.

Complementary Technologies and Market Expansion

Impect’s scalable cloud-based SaaS platform and its advanced tactical insights seamlessly integrate with Catapult’s athlete performance and video analysis solutions. This acquisition expands Catapult’s capabilities into soccer scouting and tactical analysis, addressing a fragmented market that currently lacks standardized, high-quality scouting tools. The combined offering is expected to enhance customer retention and cross-selling opportunities, driving growth in annualized contract value (ACV) and profitability, measured by Catapult’s Rule of 40 metric.

Robust Financial Performance and Growth Outlook

Catapult’s recent trading update highlights strong momentum, with ACV growing 18% year-over-year on a constant currency basis and management EBITDA increasing by at least 45%. The acquisition is expected to be accretive to these growth metrics. Catapult’s pro forma net cash position post-transaction is solid, with a net cash to FY25 management EBITDA ratio of 2.7x, underscoring financial discipline in funding the deal.

Risks and Integration Challenges

While the acquisition offers strategic benefits, Catapult acknowledges risks including potential delays in completion, integration challenges, and retention of key Impect personnel. The company has secured warranty and indemnity insurance to mitigate certain risks and has disclosed comprehensive risk factors related to the acquisition, market conditions, and operational execution. Completion is expected within three weeks, subject to customary conditions precedent.

Bottom Line?

Catapult’s acquisition of Impect and the accompanying equity raise mark a decisive step toward expanding its soccer analytics footprint, but successful integration and market execution will be critical to unlocking full value.

Questions in the middle?

• How will Catapult integrate Impect’s proprietary Packing metrics into its existing platform to maximize cross-selling?
• What are the key performance hurdles tied to the deferred and contingent consideration, and how achievable are they?
• How will the equity raise and potential dilution impact shareholder value in the near term?