NAGA Group has successfully completed its merger with Key Way Group, the parent company of CAPEX.com. This merger, which received all necessary regulatory approvals within six weeks, aims to enhance NAGA’s global footprint and drive cost efficiency, EQS News reported.

Expanding User Base

The merger has positioned NAGA Group as one of the notable neo-brokers globally, with approximately 1.5 million users spanning over 100 countries. The integration of CAPEX.com’s user base into NAGA’s ecosystem is expected to introduce users to a range of features and services, setting the NAGA SuperApp apart from competitors.

NAGA’s strategy includes leveraging common technology across the entire group to streamline operations and reduce costs. The group anticipates cost savings of up to EUR 9 million per year, a figure that had previously been projected at USD 10 million. The immediate focus will be on harnessing synergies in technology, regulatory processes, and customer acquisition efforts.

Commenting on the merger, Octavian Patrascu, the CEO of The NAGA Group, expressed enthusiasm about the opportunities ahead: “I am thrilled about the successful merger and the new opportunities it brings. We’ve executed this as planned, setting the stage to focus on synergies and drive growth.” Patrascu also emphasized the importance of maintaining NAGA’s innovative spirit while embracing the efficiencies of a more structured organization.

User Migration to NAGA

The migration of CAPEX.com’s existing users to the NAGA platform is scheduled to begin in the coming days. This transition will provide CAPEX users with access to NAGA’s extensive offerings, including social trading, neo-banking, and cryptocurrency trading, significantly enhancing the user experience. The positive impact of these synergies is expected to generate an EBITDA effect of around EUR 4 million annually.

Last month, the required regulatory approvals were granted for the merger of NAGA Group and CAPEX.com. The deal, involving CAPEX.com, operated by Key Way Group, was initially announced in 2023. In April, the proposed transaction was approved by the shareholders of the publicly listed NAGA. The approval came despite a notable revenue decline, a net loss, and 40% staff cuts last year, the supervisory board of the publicly listed NAGA Group AG (XETR: N4G).

NAGA’s revenues declined 32% from €57.6 million announced in 2022 to €39.7 million in 2023. The financial results significantly declined from those reported at the beginning of this year.