Are NAGA and CAPEX working together? What’s the story behind these two brokers?

NAGA Group, a financial technology company, announced a merger agreement with Capex.com, a multi-asset online trading platform, on December 19, 2023.On the same day– CAPEX relesess an official statement regarding this. It says CAPEX.com is pleased to announce that it has agreed terms to merge with The NAGA GROUP (XETRA: N4G, ISIN: DE000A161NR7), provider of the All-in-One Financial Super App, NAGA, by way of a non-cash capital increase.

CEO of CAPEX injected USD 9 million into the business

Octavian Patrascu, the Founder and CEO of CAPEX.com, invested USD 9 million into the company through a convertible bond to help support its merger with NAGA Group.

The goal of this merger is to create a strong and profitable fintech company by combining the strengths and users of both businesses. Together, NAGA and CAPEX.com have over 1.5 million users around the world and expect to earn more than USD 250 million in revenue over the next three years.

Octavian Patrascu, the incoming Group CEO of the combined entities, commented, “I am truly excited about this union as in today's market, consolidation can help accelerate our roadmap, objectives and give us the dimension needed for true innovation. NAGA and CAPEX.com have a multitude of synergies and that is why I am confidently investing my own money in this transaction. I believe we can reach our targets and am ready to embrace this new challenge to set a new benchmark in the industry.”

Michael Milonas, the CEO of NAGA, added, “I am particularly pleased with this development as it unlocks value under the leadership of Octavian and becomes the cornerstone of NAGAs future success, based on three pillars. In terms of cost and revenue synergies, which will lead to a positive EBITDA impact immediately. In terms of strategic synergies, the combined entity will have a much bigger footprint regarding users, licenses, and technology, which will lead to scaling the business in the medium term as well as the long term. And lastly, joint leadership is convinced about a strong cultural integration. This is the foundation of a perfect match, and I am excited about what the future holds for NAGA.”

8 Licenses, Greater Global Reach

Together, the merged entities hold 8 regulatory licenses worldwide. With these combined licenses, NAGA and CAPEX can operate in over 50 countries, including the rapidly expanding MENA region. This will allow NAGA to launch its innovative social trading platform at scale across new markets.