CAPEX.com and NAGA Merger Finalize in August

NAGA, a German broker (XETRA: N4G), has obtained all applicable regulatory approvals for its merger with Key Way Group Ltd., which operates under the CAPEX.com brand. The regulatory certifications are expected to be finalized by the end of August 2024, following the initial approval of this pivotal merger by NAGA shareholders with a 99.81% vote in April.

One of the world's foremost neo-brokers, with an estimated 1.5 million consumers in more than 100 countries, will be established as a result of the merger. CEO of The NAGA Group AG, Octavian Patrascu, conveyed his enthusiasm for the strategic milestone, underscoring its importance for NAGA's future expansion. “Our strategic journey has reached a critical juncture with the regulatory approval and consent to our plans.” “I am enthusiastic about the prospect of establishing new industry standards and developing the joint company,” he declared.

New executives have been recruited by NAGA to fortify its leadership team in anticipation of this merger. Group CEO Michael Milonas has been appointed, while Chief Commercial Officer (CCO) Sam Chaney has been appointed to spearhead global expansion in emergent markets.

In the fiscal year 2023, NAGA reported brokerage business revenues of €45.5 million, a 20% decrease from the €57.6 million reported in the previous year. In spite of this revenue decline, the company's EBITDA experienced substantial growth, reaching approximately €7 million, a substantial improvement from the €-13.7 million loss experienced the previous year.

Nearly two-thirds of NAGA's cost base was reduced during the summer restructuring in comparison to the same period in the previous year. While simultaneously maintaining new customer growth above 2022 levels, this reduction was accomplished. The company also optimized its user acquisition strategy, reducing marketing and sales expenditure from €26 million in the first nine months of 2022 to a mere €4 million for the same period in 2023.

The average net acquisition cost per new account experienced a significant decline from €1,269 in 2022 to €181 in 2023, which is truly remarkable. NAGA Group succeeded in acquiring approximately 10,000 new funded accounts in the first three quarters of 2023, despite a reduced budget, which is only 19% lower than the previous year.

In summary, the merger of NAGA and CAPEX.com is a substantial strategic step that is anticipated to be finalized by the end of August 2024. With a robust user base and enhanced capabilities, this merger is expected to establish a prominent global neo-broker. Recent strategic acquisitions, cost optimization, and leadership appointments have emphasized NAGA's dedication to industry innovation and growth.

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