NAGA Group AG, a fintech firm renowned for its trading and investment applications, has revealed plans for a merger with Capex.com, an online trading platform catering to multiple assets. In an official statement, it was disclosed that Octavian Patrascu, the Founder and CEO of Capex.com, is set to assume the role of CEO in the newly combined entity, NAGA.
The merger will transpire through a non-cash capital increase, with Capex.com being incorporated into NAGA Group AG. Furthermore, as part of the arrangement, Patrascu will inject a personal cash sum of $9 million into NAGA through a convertible bond.
The strategic intent behind this move is to forge a lucrative fintech enterprise by leveraging the collective user bases and strengths of both companies. Presently, NAGA and Capex.com boast a global user count exceeding 1.5 million, with a joint revenue projection surpassing $250 million over the next three years. Notably, the financial results for H1 2023 for the German fintech revealed a performance that exceeded expectations, with earnings totaling €25.2 million, nearly €5 million higher than the figures reported in July.
The amalgamated company anticipates generating approximately $90 million in revenue for 2023, alongside an EBITDA of $6 million. Immediate cost synergies exceeding $10 million per annum, particularly in regulatory, technology, and marketing expenses, are also expected.
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Boasting a user base exceeding 1.5 million customers across 100 countries, the joint platform aims to rapidly expand its reach to 5 million users by 2025. With a total of 8 licenses enabling operations in over 50 countries, including entry into burgeoning markets like MENA, the union provides an opportunity for NAGA to introduce its social trading tools.
As part of the agreement, Capex and its stakeholders will inject $15 million into the combined business, reinforcing NAGA’s capital position and liquidity. Additionally, a $5 million loan repayment extension to 2025 further contributes to financial stability. The completion of the transaction is contingent upon customary closing conditions, notably regulatory approval.