The deal involves a USD 9 million investment in Capex.com through a convertible bond. The merger will be facilitated by a non-cash capital increase and is expected to create a profitable fintech platform that combines the capabilities of both companies. In addition, the newly merged company is projected to significantly increase its revenue over the next three years, as it already has a collective user base of 1.5 million worldwide.
As per the official press release, a new investor will become the majority shareholder in a combined entity of Capex.com and NAGA, taking over 100% of Capex.com shares. The new entity will keep the name NAGA.
The collaboration between NAGA and Capex will allow them to operate eight licences globally. The combined platforms will house 1.5 million users from over 100 countries, to reach 5 million users by 2025. Thanks to the joint licences, NAGA and Capex will be able to operate in more than 50 countries, including the rapidly expanding MENA region. This will enable NAGA to expand its social trading services on a larger scale.
According to the press release, NAGA's technology is set to enhance Capex's current client base by offering social trading, payment services, and spot Crypto, leading to increased value and profits for the platform's clients. The business merger is also expected to save up to USD 10 million in annual operating expenses by reducing regulatory overheads, headcount, technology, and costs of goods sold (COGS). Joint marketing efforts will result in higher bidding power on paid traffic and boost domain and platform authority, which will significantly reduce client acquisition costs.
In addition, Capex and its shareholders are to invest a total of USD 15 million in equity towards the business combination. The transaction will extend the repayment of NAGA's current USD 5 million loan to the end of 2025, improve liquidity for short-term growth and is backed by NAGA's shareholders.
As per NAGA's official statement, this union in the current market will help consolidate both companies' roadmap and objectives. Moreover, the merger will result in the combined entity having a larger presence in terms of users, licences, and technology, allowing for scalable growth in the medium and long term. Additionally, the joint leadership is committed to effective cultural integration.
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