Chartwell Technologies: Upping the Ante with Internet Poker

On March 12, 2005, the founder and chief executive officer (CEO) of Chartwell Technologies (Chartwell), a company that specialized in Internet gaming development, noticed something interesting. The CNN headline news ticker on his television read: “Online Poker Industry Expected to Grow by Billions within the Year.” The CEO and his partner, the vice-president of business development, were about to decide whether to acquire MicroPower Inc. (MicroPower), an online poker company, for US$2.6 million in cash. The industry certainly had the potential for explosive growth. The CEO had to decide whether Chartwell should upgrade its current technology or purchase MicroPower to gain instant access to its C++ platform to take advantage of the growth on the online poker industry.