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NAGA and CAPEX.com merger gets regulatory green light

Posted on by darion

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

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

“With the approval of the merger by the relevant regulatory authorities and the related agreement on our plans for both companies, we have achieved 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 the continued development of the joint company and setting new standards in our industry.”

Strategic agreement

The merger was strategic because both brokers will benefit from each other’s areas of expertise and market reach. With the merger, both brokers expect to generate $250 million in revenue over the next three years and save about $10 million annually.

Both platforms already have around 1.5 million registered users in over 100 countries, and the combined entity’s roadmap is to add over 5 million registered users by 2025/26.

As part of the merger, Patrascu, founder and CEO of CAPEX.com, was appointed group CEO of the combined entity. He also injected $9 million into NAGA via convertible bonds, becoming the company’s largest shareholder.

Interestingly, NAGA founder Ben Bilski also left the company three months after the merger was announced.

Meanwhile, NAGA closed 2023 with revenue of €57.6 million, down 32%, while its losses widened by 40% from €44.1 million to €60.9 million. The company also cut 40% of its staff last year to cut costs.

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

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

“With the approval of the merger by the relevant regulatory authorities and the related agreement on our plans for both companies, we have achieved 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 the continued development of the joint company and setting new standards in our industry.”

Strategic agreement

The merger was strategic because both brokers will benefit from each other’s areas of expertise and market reach. With the merger, both brokers expect to generate $250 million in revenue over the next three years and save about $10 million annually.

Both platforms already have around 1.5 million registered users in over 100 countries, and the combined entity’s roadmap is to add over 5 million registered users by 2025/26.

As part of the merger, Patrascu, founder and CEO of CAPEX.com, was appointed group CEO of the combined entity. He also injected $9 million into NAGA via convertible bonds, becoming the company’s largest shareholder.

Interestingly, NAGA founder Ben Bilski also left the company three months after the merger was announced.

Meanwhile, NAGA closed 2023 with revenue of €57.6 million, down 32%, while its losses widened by 40% from €44.1 million to €60.9 million. The company also cut 40% of its staff last year to cut costs.