The financial technology sector is witnessing a significant consolidation with the announcement of a strategic merger between NAGA, a provider of an all-encompassing financial application, and Capex.com, a multi-asset trading platform. This merger is being facilitated through a unique non-cash capital increase arrangement.

Leading the charge in this merger is Octavian Patrascu, the founder of Capex.com. Patrascu is set to make a substantial personal investment of $9 million into the venture via a convertible bond. 

The merger is poised to create a formidable fintech platform by amalgamating the strengths and capabilities of both NAGA and Capex.com. This collaborative effort is expected to cater to a global user base exceeding 1.5 million, setting the stage for significant revenue generation. Projections estimate that the combined company could potentially amass over $250 million in revenue over the next three years.In 2023 alone, the joint venture is anticipated to generate approximately $90 million, with an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $6 million. The merger includes a reverse incorporation of Capex.com into NAGA Group AG. Furthermore, Capex and Patrascu are contributing an additional $15 million in cash as part of the business combination. The synergy between the two companies is expected to yield immediate cost savings exceeding $10 million annually. 

Capex.com has shown impressive growth, with an 80% CAGR over the past three years. It boasts a robust user base and monthly sign-ups, indicative of its popularity and market penetration. Under Patrascu's leadership, the company has secured multiple prestigious licenses, including one from Abu Dhabi's ADGM, bolstering its global regulatory compliance and reach.

The combined entities will operate under a total of 8 global licenses, with a joint annual trading volume in 2023 estimated at around $300 billion. The platforms are expected to host 1.5 million users from over 100 countries, with an ambitious target of reaching 5 million users by 2025. This expansion will include significant operations in the MENA region, where NAGA's innovative social trading will be scaled up.

NAGA's proprietary technology is set to enhance Capex's existing client base by introducing additional services like social trading, payment solutions, and cryptocurrency trading. This integration is expected to increase the lifetime value of clients significantly, thereby driving additional profits.

Following this transaction, the new investor will become the majority shareholder in the combined entity, which will retain the NAGA brand. Octavian Patrascu, with his extensive experience and track record in the fintech and neo-brokerage industry, is poised to take on the role of Group CEO of the merged entity.