Insights

Catapult (ASX:CAT) share price halted ahead of $57m capital raising

The company is looking to raise capital to fund an acquisition.
The post Catapult (ASX:CAT) share price halted ahead of $57m capital raising appeared first on The Motley Fool Australia. –

Catapult Group International Ltd (ASX: CAT) shares are locked in a trading halt this morning following the company’s announcement regarding a new acquisition and capital raising.

The Catapult share price closed yesterday’s session 6.3% higher at $2.18. Let’s take a look at what the company announced this morning.

Catapult shares frozen

Catapult shares won’t be going anywhere on Wednesday after the company advised it’s undergoing a $57 million capital raising at $1.90 per share. The funds are being raised for the acquisition of SBG Sports Software Limited, a global leader of video and data analysis solutions for elite sports teams and motorsports.

Under the acquisition terms, Catapult will be forking out $20 million in cash and $20 million to $25 million in new Catapult shares to buy company.

Catapult believes bringing on board video data solutions will accelerate its growth in an unpenetrated section of its core market.

What does SBG do?

SBG began as a software developer to support data analysis, visualisation and video capture for the motorsports industry.

The company has a number of high profile partners including Mercedes, BMW, Porsche, and Audi. SBG provides solutions that help its clients 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 factors driving team performance and reduce weekly workflow times.

The company has seen a “remarkably fast adoption” of its technology in the European football leagues, with 70% of the English Premier League using at least one product within the last four years, and 38% of the German football league using at least one product within two years of market entry.

From a financial perspective, SBG’s revenue grew by 28% in FY21, with 100% of revenue derived from subscription.

Growth outlook

Catapult is confident that the SBG acquisition will drive its continued short to medium-term annual contract value (ACV) growth.

Through the capital raising, Catapult has also announced its plans to allocate $17 million for an expansion in its technology, product and data science capabilities.

According to the capital raising presentation, the company is confident in its long-term strategy to expand its ACV to 10 times its current size.

Catapult share price snapshot

Excluding the March 2020 selloff, the Catapult share price has largely been range bound between highs of $2.20 and lows of $1.60 since November 2019.

The company was heavily impacted by COVID-19 lockdowns as the competitive sporting industry came to a grinding halt. However, Catapult has seen a slow pickup in revenue growth, evidenced by its FY21 results.

Catapult shares are expected to resume trading by Thursday 24 June.

The post Catapult (ASX:CAT) share price halted ahead of $57m capital raising appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Top ASX shares to buy in June 2021

Catapult (ASX:CAT) share price tumbles 5% on broker downgrade
Brokers name 3 ASX shares to buy now

Catapult (ASX:CAT) share price sprints 5% higher on FY21 results

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!