Cayetano develops games for the online and mobile markets. Under the terms of the deal, the company will retain its software developers and graphic designers based in Bulgaria.
Paddy Power said the acquisition will predominantly be valued on the future performance of the business. “The consideration is capped and the majority of that maximum consideration is payable subject to performance over the next number of years,” the company said in a statement.
As of October 31, Cayetano had gross assets of £0.20 million and net assets of £0.16 million.
Paddy Power chief executive Patrick Kennedy said: “Cayetano is one of the best developers of its kind in the egaming 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.”
Prior to the acquisition announcement, the company had an agreement with Paddy Power to supply the bookmaker with a selection of its slots and table games.