Paddy Power purchases Cayetano
Bookmaker Paddy Power has agreed a deal to purchase CT Networks Limited, a games and software development firm incorporated in the Isle of Man that trades under the moniker Cayetano, for an undisclosed sum.
The acquisition follows the signing of a games supply deal between the two in June. Dublin-based Paddy Power stated that consideration for the deal is to be capped with the majority ‘payable subject to performance over the next number of years’.
Cayetano, which reported net assets of £160,000 as of October 31, provides online casino software to some of the iGaming industry’s biggest brands including SkyVegas.com and utilises a team of developers and graphic designers based in the Bulgarian capital Sofia.
“This is a great step for Cayetano and its team,” said Nick Maughan, Chief Executive Officer for Cayetano, which has been in operation since 2009
“We're all excited at the prospect of being part of Paddy Power, a business whose success in this market has been built on an exceptional understanding of online customers and product trends.”
Paddy Power also released a performance update that showed continued growth in its online business with the amount staked on its website increasing by 31 percent while revenues rose 33 percent.
In addition, the number of customers wagering via mobile devices also climbed last month to now account for 44 percent of the firm’s total online users while revenues from Paddy Power’s Australian division accelerated by 23 percent last month compared to seven percent over the first six months of 2011.
Paddy Power declared that its UK retail division also performed strongly with like-for-like sportsbook amounts staked and machine gaming revenues both up eight percent compared to a reduction in average stake per bet from its land-based Irish operations.
The operator predicted earnings per share of 15 percent for 2011 and stated that the overall impact of sporting results has been positive despite being below last year’s ‘exceptional’ results.
“Cayetano is one of the best developers of its kind in the iGaming sector and its acquisition will provide Paddy Power with a compelling range of online gaming products as well as a new internal source of gaming development expertise,” said Patrick Kennedy, Chief Executive Officer for Paddy Power.
“Paddy Power has built strong in-house information technology and product development capability with our proprietary sportsbetting models a great example of that success. Cayetano is a natural extension of this existing capability and reflects Paddy Power's evolving product mix.”