NAGA and CAPEX.com Merger: Regulatory Milestone Reached

The regulatory approval for the NAGA and CAPEX.com merger marks a significant milestone, paving the way for future growth and strategic development. An official announcement confirmed that the merger between NAGA Group (XETRA: NG4) and CAPEX.com has secured the required regulatory approvals.

NAGA and CAPEX.com Merger: Regulatory Milestone Reached

The merger between NAGA and CAPEX.com, overseen by Key Way Group, was initially disclosed in December 2023. Shareholders of publicly listed NAGA approved the deal in April. With final regulatory approvals now in place, the companies anticipate finalizing the merger by 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,” mentioned 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.”

Regulatory Hurdle Cleared

The merger strategically leverages the expertise and market reach of both brokers, aiming to generate $250 million in revenue over the next three years and achieve annual savings of approximately $10 million. The combined platforms currently serve over 1.5 million registered users across more than 100 countries, with plans to expand to over 5 million registered users by 2025/26.

As part of the merger agreement, Patrascu, founder and CEO of CAPEX.com, assumed the role of Group CEO for the combined entity. He also bolstered NAGA with a $9 million investment through a convertible bond, becoming its largest shareholder. Notably, NAGA’s founder, Ben Bilski, departed from the company three months following the merger announcement.

In 2023, NAGA concluded with €57.6 million in revenue, marking a 32 percent decline, alongside a 40 percent increase in losses from €44.1 million to €60.9 million. The company also implemented a 40 percent reduction in staff during the year as part of cost-saving measures.

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