Paddy Power Buys Cayetano
Earlier this year, Irish online gaming company Paddy Power signed an agreement with CT Networks Limtied, an online gaming games and software development firm that operated under the name Cayetano, for the supply of online games and gambling software. However, Paddy Power did not think the endorsement deal satisfied all of its needs and they ventured into the acquisition of Cayetano for an undisclosed firm.
Paddy Power stated that the deal is subject to future performance of the software and the company. Cayetano reported net assets of £160,000 as of October 2011. They are the software behind online gaming titans like SkyVegas.com and the company is based in Bulgaria. Expectations of the software’s performance are high and the payout should correspond.
A Blossoming Romance
The deal has brought two online gaming giants together. Paddy Power recently released a performance update in which they show steady growth for their online venue, the amount gambled on their site grew by 31%, while their revenues rose by 33% in 2011.
Paddy Power is also showing a steady increase in their number of customers as mobile wagering has grown in multiple parts of the world. The number of customers playing at Paddy Power on their mobile devices raised by 44%, also the revenues rates from their Australian audience increased by 23% in the last month only — the growth rates in this market for the first six months of 2011 were 7%, so this is a huge increase for the firm.
Patrick Kennedy, the Chief Executive Officer of Paddy Power stated his thoughts on the new acquisition. “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,” he said.
What to Expect?
Paddy Power is a firm with a solid marketing strategy and an outstanding management team. The acquisition of Cayetano is probably a reflection of their outlook for the future of the company. Cayetano has a strong reputation as a software developer and the combination of two successful firms suggests a positive final outcome.
All of Paddy Power users are a little uneasy about the software change; however, there is nothing to fear as Cayetano is one of the best software developers out there. Their selection of games has been outstandingly designed and players already on this software show great satisfaction with its quality. Paddy Power is known for their ability to satisfy their customers, and this move also took their preferences into account. “Paddy Power has built strong in-house information technology and product development capability. Cayetano is a natural extension of this existing capability and reflects Paddy Power’s evolving product mix,” Kennedy said.
What are your thoughts on the new software changes?