Shareholder Approval Secured for NAGA and CAPEX.com Merger
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The stakeholders of publicly listed NAGA GROUP AG (XETRA: N4G) have ratified the consolidation of the brokerage firm with CAPEX.com. A staggering 99.81 percent of NAGA shareholders expressed their support for the merger during the extraordinary general assembly held on April 12th.
NAGA GROUP AG Aims To Solidify Its Leadership In The Fintech Industry
A recent press release disclosed that the Hamburg-listed brokerage firm is in the process of acquiring two additional regulatory licenses, pending approval. However, the announcement did not specify the jurisdictions for which these licenses are being sought. Presently, NAGA and CAPEX collectively possess nine regulatory licenses.
Octavian Patrascu, the newly appointed Chief Executive Officer of the NAGA Group, emphasized the significance of securing the vote.
He stated that securing this vote would allow the team, after the regulatory approvals for the merger, to execute the new business plan. The team is upgrading the SuperApp and broadening the global reach of NAGA to offer a true all-in-one user experience, unique in the realm of Fintech.
The merger between NAGA and CAPEX.com was agreed upon in December last year. According to the terms of the agreement, Patrascu assumed the role of Group Chief Executive Officer for the merged entity. Furthermore, he infused $9 million into NAGA through a convertible bond, thereby becoming the largest shareholder in the firm.
The Firm Seeks To Generate Significant Revenue Growth Over The Next Three Years
Initially, the completion of the agreement was scheduled for the end of the second quarter of 2024. However, it is currently awaiting customary regulatory approval.
The merger was highly strategic, as both brokers are poised to capitalize on their areas of expertise and market penetration. Through this consolidation, the two entities anticipate generating $250 million in revenue within the next three years, along with annual savings of approximately $10 million.
The two platforms currently boast more than 1.6 million registered users. The roadmap of the merged entity sets a target to increase this number to over 5 million registered users by 2025/26.
Patrascu’s vision to establish a “New NAGA” through market expansion and the enhancement of products, aims to develop a “Superapp” by integrating all current NAGA services into a unified platform.
Ben Bilski, the founder of NAGA who led the broker until June 2023, parted ways with the company last March, just three months after the merger announcement.
