Lakewood, NJ, Sept. 10, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Reliance Global Group, Inc. (OTC: RELI) ("RELI" or the "Company"), is pleased to announce that it has completed the acquisition of Altruis Benefit Consulting. The acquisition follows a letter of intent between the parties as previously announced on May 8, 2019.
Headquartered in Bingham Farms, Michigan, Altruis serves customers throughout the entire State of Michigan, specializing in providing individual and group health insurance. Altruis generated revenue of approximately $2.5 million in 2018. The transaction was completed through a combination of $1.4 million of cash, provided by Reliance Global Holdings, LLC, a Company controlled by Ezra Beyman, CEO of RELI, as well as $4.1 million debt from an unaffiliated lender, and the issuance of approximately 11.9 million shares of restricted stock. Insurance agencies, as opposed to carriers, bear no insurance risk.
The Company further announces that it has transferred into RELI both Southwestern Montana Insurance, a group health insurance company providing employee benefits insurance to groups and individuals, as well as Fortman Insurance Agency, LLC, which provides personal and commercial insurance lines. As previously announced in April and May 2019, respectively, Southwestern Montana Insurance and Fortman Insurance Agency, LLC, had been acquired by the Company's affiliate, Reliance Global Holdings LLC. Reliance Global Holdings LLC has transferred its ownership in the two companies to RELI, in exchange for approximately 14.8 million shares of restricted common stock. Southwestern Montana Insurance and Fortman Insurance Agency, LLC collectively generated approximately $3.1 million of revenue in 2018.
Ezra Beyman, RELI's CEO, stated, "We continue to aggressively execute on our acquisition strategy in the insurance agency sector. Since taking over control of RELI in September of 2018, we are now operating at a revenue run in excess of $7 million and have made acquisitions in excess of $16 million. In addition, we have identified numerous additional acquisitions to help further scale the business. Overall, we remain committed to identifying undervalued, and accretive transactions that leverage our national infrastructure and core expertise within the real estate and insurance markets."
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. 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. 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.