Capex CEO Invests $9M in NAGA, Merger Scheduled for Q2 2024

Capex invests $9M in NAGA in a transformative maneuver, formalizing a merger that reshapes the financial technology sector. Capex.com’s founder and CEO, Octavian Patrascu, will assume the CEO role for the newly formed entity. The merger, facilitated through a non-cash capital increase, includes a substantial personal investment of $9 million by Patrascu into NAGA via a convertible bond.

The amalgamation of these two major players in the online trading and investing space aims to harness synergies, leveraging their combined user bases and strengths. The joint venture, boasting a global user count exceeding 1.5 million, projects revenues exceeding $250 million over the next three years.

Recent financial reports for H1 2023 revealed NAGA’s stellar performance, with earnings reaching €25.2 million, surpassing initial projections by almost €5 million. The merged entity expects to generate around $90 million in revenue for 2023, boasting an EBITDA of $6 million and immediate cost synergies exceeding $10 million annually.

Michael Miloans, NAGA’s CEO, emphasized the strategic significance of the merger, stating, “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.”

Capex CEO Invests $9M in NAGA, Merger Scheduled for Q2 2024

Capex.com’s stock prices responded positively to the acquisition news, witnessing a 6.6% surge during Tuesday’s trading session on the German stock exchange, reaching €1.1.

As part of the agreement, Patrascu assumes the role of Group CEO for NAGA.They aim to complete the merger in Q2 2024, pending customary approvals and conditions. Patrascu expressed confidence in the transaction, stating, “NAGA and Capex.com have a multitude of synergies, and that is why I am confidently investing my own money in this transaction.”

For Capex.com, this marks another strategic move in 2023, following the July acquisition of WiredMarket’s client book to enter the Greek market.

With a collective user base surpassing 1.5 million customers across 100 countries, the merged platform aims to rapidly expand its reach to 5 million users by 2025. The union grants access to over 50 countries through a total of 8 licenses, facilitating entry into high-growth markets such as the Middle East and North Africa (MENA), where NAGA can introduce its social trading tools.In a show of commitment to the combined business, Capex and its shareholders are set to invest $15 million, further enhancing NAGA’s capital position and liquidity, with a $5 million loan repayment extension to 2025.

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