Reliance Global Group, Inc. Announces Insurance Agency Acquisition
- May 07, 2019
LAKEWOOD, NJ -- Reliance Global Group, Inc. (OTC: RELI) ("RELI" or the "Company"), is pleased to announce that RELI's affiliated privately-owned company Reliance Global Holdings, LLC has completed the previously announced acquisition of an unaffiliated insurance agency, Fortman Insurance Agency, LLC, for a total purchase price of $4.138 million, consisting of cash and the issuance of restricted stock. Insurance agencies, as opposed to carriers, bear no insurance risk.
As RELI is in the process of completing its audited financial statements, in order to become a SEC- reporting issuer, this acquisition was purchased by Reliance Global Holdings, LLC, and will be transferred into RELI upon the successful completion of the audit.
Headquartered in Ohio, Fortman serves customers throughout the entire State of Ohio. Fortman specializes in providing personal and commercial lines of insurance. For the fiscal year ended December 31, 2018, Fortman had written premiums of approximately $21,000,000 and revenues of $1,600,000 (unaudited). Reliance LLC, which is controlled by Ezra Beyman, RELI's Chairman and CEO, funded the transaction through a combination of cash, stock and debt financing.
This is the fifth acquisition since Reliance LLC acquired control of RELI in September 2018 and is in line with management's growth strategy of completing acquisitions in a timely manner. Additionally, RELI is in the approval process of assuming the loan of the 19 properties previously placed under LOI.
Ezra Beyman, RELI's CEO, stated, ''We are delighted with RELI's continuing to make acquisitions in the insurance agency space, as well as our vision to grow our independent agencies, and we intend to continue to make acquisitions in the real estate sector as well."