In a significant development for the fintech sector, the shareholders of NAGA GROUP AG, a publicly listed company on XETRA (N4G), have overwhelmingly approved a merger with the brokerage CAPEX.com.
During an extraordinary general meeting on April 12, a staggering 99.81 percent of NAGA’s shareholders endorsed the merger, setting the stage for a major consolidation in the industry.
The press release issued on Monday disclosed that NAGA, based in Hamburg, is in the process of obtaining two additional regulatory licenses, although the specific jurisdictions were not disclosed.
Together, NAGA and CAPEX currently hold nine regulatory licenses.
Octavian Patrascu, the newly appointed CEO of the NAGA Group and founder and CEO of CAPEX.com, expressed his enthusiasm about the merger’s approval, stating, “Securing this vote will allow us, after the regulatory approvals for the merger, to execute the new business plan.”
He elaborated on the future direction, highlighting the expansion of NAGA’s global footprint and the enhancement of the SuperApp, aimed at providing a comprehensive all-in-one user experience in the fintech world.
The agreement for this merger was finalized last December.
As part of the arrangement, Patrascu injected $9 million into NAGA through a convertible bond, becoming the largest shareholder of the company.
The deal’s closure was initially targeted for the end of the second quarter of 2024, pending the usual regulatory approvals.
The merger is considered strategic for both entities, combining their expertise and market presence to leverage substantial benefits.
The combined operations are projected to generate $250 million in revenue over the next three years and achieve annual cost savings of approximately $10 million.
Currently, the platforms boast over 1.6 million registered users.
The strategic roadmap for the merged entity aims to increase this number by more than 5 million registered users by 2025/26.
Patrascu’s vision for a “New NAGA” includes significant market expansion and the enhancement of products and applications, with ambitious plans to develop a SuperApp that consolidates all existing NAGA services into one integrated platform.
In a notable company shift, Ben Bilski, the founder of NAGA who led the company until June 2023, departed from the firm in March, just three months following the merger announcement.