Acquisition grows the Company’s footprint across 47 states and expands offering within the Medicare supplement insurance market
LAKEWOOD, N.J., Jan. 11, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — Reliance Global Group, Inc. (Nasdaq: RELI; RELIW), which combines AI and cloud-based technologies with the personalized experience of a traditional insurance agency, today announced that it has completed the previously announced acquisition of Medigap Health Insurance Company (“Medigap”) in an asset purchase transaction.
Medigap is an insurance brokerage company headquartered in Florida, specializing in Medicare supplement insurance. Medigap generated revenue of approximately $7 million1 for the trailing twelve months ended September 30, 2021.
Ezra Beyman, CEO of Reliance Global Group, commented, “The acquisition of Medigap is a major milestone for the Company as it immediately increases our revenues by approximately 70%, significantly expands our geographic footprint and broadens our capabilities within the Medicare supplement market. Medigap is one of the nation’s fastest growing providers of Medicare supplemental insurance coverage with licenses and doing business in 47 states. Our goal is to aggressively expand their operations, as well as capitalize on cross-selling opportunities across our existing portfolio companies. Importantly, we believe this acquisition will be highly accretive and we anticipate significant operating synergies to further enhance profitability. This acquisition builds upon our successful track record of acquiring growing, cash flow positive agencies at attractive multiples. I would especially like to thank the Reliance and Medigap teams for their exceptional efforts, which enabled us to close this acquisition ahead of schedule.”
Total consideration for Medigap was $20.1 million, consisting of both cash and restricted common stock of Reliance Global Group.
Additional details on the acquisition will be available in the Company’s Current Report on Form 8-K, to be filed with the Securities and Exchange Commission.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI, RELIW) is combining advanced technologies, with the personalized experience of a traditional insurance agency model. Reliance Global Group’s growth strategy includes both an organic expansion, including 5MinuteInsure.com, as well as acquiring well managed, undervalued and cash flow positive insurance agencies. Additional information about the Company is available 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. 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.
1 This is an unaudited revenue number provided to the Company by the target, and it has not been independently verified by the Company.