Octavian Patrascu is going to personally inject USD9 million into the company via a convertible bond and becomes the Group’s CEO.
In a combination of direct cash injections and the contribution of 100% of Capex.com shares to NAGA, the new investor will become the majority shareholder in the combined entity, which will retain the brand name NAGA.
“I am truly excited about this union as in today’s market, consolidation can help accelerate our roadmap, objectives and give us the dimension needed for true innovation. NAGA and Capex.com have a multitude of synergies and that is why I am confidently investing my own money in this transaction. I believe we can reach our targets and am ready to embrace this new challenge to set a new benchmark in the industry,” said Octavian Patrascu, the incoming Group CEO of the combined entities.
The union will be facilitated through a non-cash capital increase and is expected to forge a powerful and profitable Fintech platform, combining the strengths of both Groups. With a collective user base of 1.5 million worldwide, the newly merged company is projected to generate over USD250 million in revenue over the next three years.
“I am particularly pleased with this development as it unlocks value under the leadership of Octavian and becomes the cornerstone of NAGAs future success, based on three pillars. In terms of cost and revenue synergies, which will lead to a positive EBITA impact immediately. 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 (…)”, stated Michael Milonas, the CEO of NAGA.
The joint entities will operate 8 licenses globally, and this year are estimated to generate USD90 million in joint revenue with an EBITDA of USD6.5 million. The joint annual trading volume in 2023 will stand around USD300 billion dollars and the combined platforms will be home to 1.5 million users from more than 100 countries expecting to reach 5 million users by 2025. With its joint licenses, NAGA and Capex can operate in more than 50 countries, including the fast-growing MENA region where NAGA will be able to roll-out its innovative social trading at scale.
Overall, it is expected that the business combination will be able to save up to USD 10 million in annual operating expenses, such as regulatory overheads, headcount, technology and costs of goods sold (COGS).
Startup CAPEX.com was awarded by Ziarul Financiar (ZF) daily in 2022 as the most valuable tech startup in Romania. The company has so far raised USD31 million via multiple funding rounds and its revenue grew from USD26 million in 2021 to nearly USD40 million in 2023.
Fosun Group and Apeiron Group are the best-known shareholders within NAGA.
The merger is expected to be completed in Q2 2024 and is subject to regulatory approvals and customary closing conditions, primarily regulatory change of control which is envisioned within a time frame of 3 to 6 months. The parties are committed to pursue an uplisting to Nasdaq as reported to the market in late 2021, which has been halted due to unfavorable market conditions. Potential interest by underwriters is to be assessed in the months following closing.