Paddy Power has purchased CT Networks Limited (Cayetano) the Bulgarian games developer for an undisclosed price, which will be determined by the company performance over the next few years.

Cayetano, which has its headquarter in the Isle of Man, develops games for the online and mobile gaming industry. Most of its software developers and designers are based in Bulgaria.

The chief executive of Paddy Power, Patrick Kennedy, commented: “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.

"Paddy Power has built strong in-house IT and product development capability, with our proprietary sports betting models a great example of that success. Cayetano is a natural extension of this existing capability, reflecting Paddy Power's evolving product mix.”

The chief executive of Cayetano, Nick Maughan, commented: “This is a great step for Cayetano and its team. 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.”

There will be no change to the management and founding shareholders of Cayetano.