The German broker received all necessary regulatory approvals to merge with Key Way Group Ltd., which operates under the CAPEX.com brand.
Back in April, the Extraordinary General Meeting of NAGA shareholders had given the green light for the merger with CAPEX.com with a vote of 99.81%. The resolution will be implemented after the regulatory clearance, with the transaction expected to conclude by the end of August 2024.
The merger will create one of “the world’s leading neo-brokers,” with around 1.5 million users across more than 100 countries.
NAGA has recently made a series of new additions to its top management team, hiring new executives for key leadership positions, with Michael Milonas taking on the role of Group CEO. Additionally, NAGA appointed Sam Chaney as the Chief Commercial Officer (CCO), responsible for driving global growth in emerging markets.
For the 2023 financial year, the group’s brokerage business revenue was reported at €45.5 million. This figure represents a +20 percent decline from the previous year’s revenue of €57.6 million. However, the company’s EBITDA showed a marked improvement, reaching around €7 million, a sharp contrast to the previous year’s loss of €-13.7 million.
Following a restructuring in the summer, NAGA decreased its cost base by nearly two-thirds when compared with the same period in the year earlier whilst keeping new customer growth above 2022 levels.
Meanwhile, the broker optimized its user acquisition strategy, reducing its marketing and sales spending. In the first nine months of 2022, the company spent approximately €26 million, while in 2023, this figure was trimmed to just €4 million for the same period.
Interestingly, the average net acquisition cost per new account dropped from €1,269 in 2022 to €181 in 2023. Despite the reduced budget, NAGA Group acquired around 10,000 new funded accounts in the first three quarters of 2023, only 19% less than the previous year.
