Playtech ups Sageder's maximum earn-out by €35m

Playtech has increased the maximum payout to the head of its new sports division by €35m by lifting the cap to €95m.

The gambling software company said it had increased Armin Sageder's potential windfall to align his interests with the enlarged sports division.

Sageder joined Playtech when the FTSE 250 group bought 90% of the company he founded, Best Gaming Technology (BGT), in 2016. Sageder, who made about $50m from the sale, kept a 10% stake in BGT and agreed to stay for at least three years.

Playtech had agreed to buy Sageder's stake in BGT in 2019 for up to €60m subject to performance in an earn-out arrangement. Under a proposed "corporate reorganisation", Sageder will exchange his stake in BGT for 10% of the enlarged sports division and will get up to €95m when Playtech buys the stake in 2019.

A spokesman for Playtech said the change reflected the business plan put in place since the integration of BGT and that it was important Sageder should be properly rewarded for his enlarged role.

Playtech warned in November that its annual performance would fail to meet market forecasts due to a slowdown in Asia and problems with its Sun bingo contract.

At 1018 GMT, the shares were up 0.4% to 852p.