Bookmaker Paddy Power says it has agreed a deal to buy CT Networks Ltd (Cayetano), a games developer headquartered in the Isle of Man.
CT Networks has developed a range of games for the online and mobile gaming markets, using its team of software developers and graphic designers located in Sofia, Bulgaria.
It said the price of the deal was capped and that most of the maximum consideration was payable subject to performance over the next few years.
The company also issued an interim management statement today, which said that the strong growth seen in the first half of 2011 has continued.
Shares in Paddy Power made strong gains today, closing up 4.9% at €42.70.
Paddy Power raised its outlook for full-year earnings growth following a strong performance in its main online betting business since June. The company said it now expected full-year earnings per share to rise by 15-20% year-on-year.
In the period from July to November 14, it said its UK and Irish online business increased sportsbook amounts staked by 31% and maintained its market leading position in mobile sports betting.
It said that as expected, the Irish retail business saw growth in bet volumes but a reduction in the average bet stake. It added that its year-on-year growth later in 2011 will benefit from a weak comparative due to the bad weather experienced late last year.
Paddy Power's Australian online turnover growth also saw significant growth, up 23% compared to 7% in the first half of the year.
It said that the overall impact of sporting results in the months from July to November has been positive compared to normal expectations, however, they were below the ''exceptional'' results the same time last year.
