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NAGA and CAPEX.com Merger Receives Regulatory Greenlight

source-logo  financemagnates.com 09 July 2024 08:44, UTC

The merger of two brokerage brands, NAGA Group (XETRA: NG4) and CAPEX.com, has received the necessary regulatory approvals, an official announcement today (Tuesday) revealed.

Final Milestone in the Merger

The merger of NAGA and CAPEX.com, operated by Key Way Group, was first announced in December 2023. In April, the deal received the green light from the shareholders of the publicly listed NAGA. With the final regulatory approvals, the companies expect to close the merger by the end of August 2024.

“With the approval of the merger by the competent regulatory authorities and the associated consent to our plans for the two companies, we have reached a strategic milestone for the future growth of NAGA,” said Octavian Patrascu, CEO of The NAGA Group AG. “I am very much looking forward to further developing the joint company and setting new standards in our industry.”

A Strategic Deal

The merger was strategic as the two brokers will benefit from their expertise domains and market reach. With the merger, the two brokers expect to generate $250 million in revenue over the next three years and save about $10 million annually.

The two platforms already have around 1.5 million registered users across more than 100 countries, and the roadmap of the merged entity aims to add over 5 million registered users by 2025/26.

As part of the merger deal, Patrascu, the founder and CEO of CAPEX.com, was appointed as the Group CEO of the merged entity. Additionally, he injected $9 million into NAGA via a convertible bond, making him the company's largest shareholder.

Interestingly, NAGA’s founder, Ben Bilski, also separated from the company three months after the merger was announced.

Meanwhile, NAGA closed 2023 with €57.6 million in revenue, which declined by 32 percent, while its losses also deepened by 40 percent from €44.1 million to €60.9 million. The company also reduced 40 percent of its staff last year to save costs.

financemagnates.com