The NAGA Group, a provider of the All-in-One Financial Super App, has revealed plans to merge with Capex.com, a multi-asset trading FinTech platform, through a non-cash capital increase. The agreement solidifies NAGA’s position as a major player in the financial industry, with Capex.com contributing significant growth and expertise.
Background and Growth:
NAGA, headquartered in Limassol, has become the official partner of Capex.com, a globally regulated FinTech platform with licenses in Europe and Abu Dhabi.
Capex.com has experienced remarkable growth, boasting an 80% CAGR over the past three years, with licenses including the prestigious ADGM license in Abu Dhabi.
Financials and Operations:
Capex.com has raised USD 31 million in equity financing and is projected to generate approximately USD 40 million in revenue for 2023.
The combined entities, operating with eight licenses globally, are estimated to achieve USD 90 million in joint revenue and USD 6.5 million in EBITDA this year.
The annual trading volume for 2023 is expected to reach around USD 300 billion, with a user base of 1.5 million from over 100 countries, aiming for 5 million users by 2025.
Operational Synergies:
The merger anticipates savings of up to USD 10 million in annual operating expenses, including regulatory overheads, headcount, and technology costs.
Joint marketing efforts are expected to enhance bidding power on paid traffic, reduce client acquisition costs, and improve brand reputation.
Strategic Leadership and Investment:
Octavian Patrascu, CEO of Capex.com, will become the new Group CEO of the combined entity after a cash injection.
Capex.com and its shareholders will invest a total of USD 15 million in equity into the business combination.
Financial Projections and Timing:
New financial projections and research coverage for the joint group will be released.
The merger is set to be completed in Q2 2024, subject to regulatory approvals and customary closing conditions.
Future Plans:
The parties express commitment to an uplisting to NASDAQ, with potential interest from underwriters to be assessed post-closing.
The merger announcement reflects a strategic move to leverage synergies, enhance operational efficiency, and fortify the market presence of both NAGA and Capex.com in the dynamic financial technology sector.
Source: https://group.naga.com/newsroom/naga-announces-merger-with-trading-app-capexcom-octavian-patrascu-the-founder-of-capex-is-to-personally-inject-usd-9-million-into-the-company-via-a-convertible-bond-setting-the-stage-for-a-strategic-merger-between-capexcom-and-naga