Post acquisition, Reliance’s revenue expected to increase greater than 100%
Attractive consolidated EBITDA returns expected for FY’24 and beyond
LAKEWOOD, N.J., Nov. 21, 2023 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI; RELIW) (“Reliance”, “we” or the “Company”), today announced it has entered into a Letter of Intent (LOI) to acquire a well established benefits enrollment company (the “Target”). The Target is a leading provider of voluntary benefits to approximately 45,000 employees throughout the United States and utilizes cutting-edge technology, setting them apart in the industry. The acquisition is subject to the execution of a definitive agreement and other customary closing conditions. The transaction is expected to close in the first quarter of 2024.
Ezra Beyman, CEO of Reliance, commented, "We are excited to announce our most significant planned acquisition to date, which would more than double our current revenue and provide attractive EBITDA returns. During fiscal year 2024, the Target is expected to generate over $21 million in revenue, increasing Reliance’s expected consolidated revenue by more than 100% to $35 million, which should result in very significant cash flow for the combined companies in 2024 and beyond. This business offers a number of unique voluntary benefits programs across many industries, which will enhance Reliance’s overall product offerings. We are very energized about this opportunity and believe that onboarding this target into the Reliance family will provide enhanced synergistic opportunities, in line with Reliance’s OneFirm go-to-market platform.”
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI, RELIW) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the transaction is expected to close in the first quarter of 2024; the acquisition would more than double our current revenue and provide attractive EBITDA returns; the Target is expected to generate over $21 million in revenue, increasing Reliance’s expected consolidated revenue by more than 100% to $35 million, which should result in very significant cash flow for the combined companies in 2024 and beyond; this business will enhance Reliance’s overall product offerings; and onboarding this target will provide enhanced synergistic opportunities, in line with Reliance’s OneFirm go-to-market platform. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company’s ability to complete the planned acquisition, and the other factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K and other subsequent filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com
