In early trade today the Catapult Group International Ltd (ASX: CAT) share price jumped 4% higher following the release of a positive announcement by the sports analytics company.
That announcement revealed that that Catapult has signed an agreement for a minimum four-year term with the Welsh Rugby Union (WRU).
The agreement will see the company supply the WRU with a total of 318 tracking units for nine teams that are active in international and regional competitions.
In order to drive enhanced physical performance in elite rugby union in Wales, the WRU intends to use the units as part of its high performance pathway, utilising Catapult's market-leading analytics platform for all training and game-day sessions.
Furthermore, the two parties will explore live match-day tracking and the possibility of sharing the data with broadcast partners.
Should you invest?
Whilst I don't believe this announcement is necessarily a game-changer, it is yet another positive development to come out of Catapult this year.
Last month the company signed a league-wide deal with Argentina's premier professional basketball league and was approved as a vendor of GPS-based wearables for in-game use in Major League Baseball.
No doubt the growing popularity of its products and the valuable data they provide end users will mean more agreements are in pipeline. Especially with the company recently stating that it believes that 80% of its addressable market is unpenetrated globally.
In light of this, I think Catapult could prove to be a great long-term buy and hold investment.
Its shares may not be cheap, but like fellow tech shares Aconex Ltd (ASX: ACX) and Altium Limited (ASX: ALU), it has enormous potential that makes it worthy of the premium in my opinion.
