Naga Group Is Talking About Merging With A Global Broker

NAGA Group, a supplier of brokerage services, cryptocurrency platforms, and a neo-banking app, has announced that it is in talks with an international brokerage business about a prospective merger.

According to the statement, the two firms are hoping to close a merger by the end of the year, subject to regulatory clearance. Naga said that it would keep its present listing status once any such purchase is completed.

“The Naga Group AG is in negotiations to seek a prospective strategic transaction with a multi-country brokerage company, perhaps in the form of a merger of the two firms. ”The acquisition is subject to due diligence and is scheduled to conclude in Q4 2023, subject to usual conditions precedent and regulatory clearances, according to the statement.

In 2022, NAGA Group reported high sales and large user growth, but its operating loss grew owing to rising marketing and advertising expenditures and the depreciation of crypto assets.

The group's brokerage business revenue was €35 million in the first half, up 51% from €23.2 million the previous year. In terms of profitability, H1 EBITDA was -€2.7 million, compared to €0.2 million in 2021.

The publicly listed fintech attributed the majority of its strong profitability to copy-trading activities in its most recent annual report. For instance, NAGA witnessed almost 4.8 million transactions replicated using its Auto Copy service in the first quarter, nearly triple the 1.7 million deals copied in 2021.

The business recorded a record €250 billion in trade volumes, up 107 percent from €121 billion in 2020. NAGA, which provides stock and cryptocurrency investing via its mobile app, estimates that its trading platform onboarded over 277,000 new accounts in 2021, a 128% increase over the previous year.

NAGAX announced a $100,000 creator fund early this year to support non-fungible token (NFT) creation on its future NFT marketplace while also strengthening its ecosystem.

NAGAX includes a futures and derivatives exchange, a crypto wallet, an integrated NFT platform, a staking platform, and a spot exchange with over 700 traded assets. The platform also intends to provide a unique Web3 social trading experience, in which user-generated content on the site is transformed into monetizable NFTs.

About Naga Group

Naga Group is a German financial technology business that runs the “SwipeStox” social trading and multi-asset brokerage platform. The firm was established in 2015 and is based in Frankfurt. Users may share and duplicate the trades of other successful traders, as well as trade a range of financial assets such as stocks, currencies, and commodities, on the site. In 2017, Naga Group went public on the Frankfurt Stock Exchange.

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