NAGA and CAPEX.com Merger Gets Shareholders Nod: 2 New Licenses in Pipeline

The shareholders of publicly listed NAGA GROUP AG (XETRA: N4G) have approved the merger of the broker with CAPEX.com. As many as 99.81 percent of the NAGA shareholders voted in favor of the merger at the extraordinary general meeting held on April 12.

Expansion Plans

The press release today (Monday) further revealed that the Hamburg-listed broker is seeking two additional regulatory licenses, which are in the process of approval. However, it did not specify the jurisdictions of the sought-after licenses.

Currently, NAGA and CAPEX hold nine regulatory licenses together.

“Securing this vote will allow us, after the regulatory approvals for the merger, to execute the new business plan,” Octavian Patrascu, the new CEO of the NAGA Group, said in a statement. “We are expanding the global reach of NAGA and upgrading the SuperApp to offer a true all-in-one user experience, unique in the world of Fintech.”

A Strategic Merger

NAGA and CAPEX.com agreed to the merger last December. Under the agreement, Patrascu, the founder and CEO of CAPEX.com, was appointed as the Group CEO of the merged entity. He also injected $9 million into NAGA via a convertible bond, making him the largest shareholder in the company.

Originally, the closure of the deal was planned for the end of Q2 2024, which is now pending customary regulatory approval.

The merger was very strategic as the two brokers will benefit from their respective expertise domains and market reach. With the merger, the two brokers are expecting to generate $250 million in revenue over the next three years and save about $10 million annually.

The two platforms already have over 1.6 million registered users, and the roadmap of the merged entity is aiming to add over 5 million registered users by 2025/26.

Patrascu's vision is to create a “New NAGA” with market expansion and enhancements of products and applications. He is also moving towards making a “Superapp” with plans to unify all existing NAGA services into a single, integrated platform.

Interestingly, Ben Bilski, who founded NAGA and headed the broker until June 2023, separated from the company last March, only three months after the announcement of the merger.