Reliance Global Group Inc. Completes Acquisition of Commercial Solutions of Insurance Agency LLC
NEW YORK, NY / ACCESSWIRE / December 11, 2018 / Reliance Global Group, Inc. (OTC PINK: RELI) ("RELI" or the "Company") is pleased to announce that it has completed the previously announced acquisition of an unaffiliated niche insurance agency, Commercial Solutions of Insurance Agency, LLC ("Commercial Solutions"), for a total purchase price of $1.2 million, consisting of cash and the issuance of 761,905 restricted RELI shares to Commercial Solutions' sole shareholder.
Headquartered in Hackettstown, NJ, Commercial Solutions serves customers in several Northeastern states including NY, NJ, PA and MD. Commercial Solutions specializes in providing commercial P&C Insurance to the trucking, towing and short-haul services industries. As an independent agent, Commercial Solutions has access to a variety of insurance programs that provide the most reasonable insurance rates to meet individual businesses' needs. Currently, Commercial Solutions supports approximately $6.7 million in annual premiums. For the fiscal year ended December 31, 2017, Commercial Solutions had revenues of $510,000 (unaudited). RELI funded the transaction through a combination of cash and debt financing. The cash required for the acquisition was provided, on behalf of RELI, by Reliance Global Holdings, LLC, which is controlled by Ezra Beyman, RELI's Chairman and CEO.
As a result of the transaction, 100% of Commercial Solutions, LLC has been acquired. The agency will now be a wholly-owned subsidiary of RELI.
RELI's Chairman and CEO, Ezra Beyman, stated, "We are pleased to complete this acquisition in the insurance agency space. This transaction is consistent with our targeted approach to acquire insurance agencies, as opposed to carriers, which bear no insurance risk. As we move forward, we will continue to identify and pursue strategic acquisitions in the real estate and insurance agency sectors that build long-term shareholder value."
About Reliance Global Group
Reliance Global Group, Inc. (OTC PINK: RELI) now is moving forward with its goal to operate as a holding company for several companies invested in the real estate, insurance brokerage, and potentially other sectors. RELI's focus will be to grow the Company by pursuing an aggressive growth strategy of acquisition opportunities, including both real estate and insurance agencies. Insurance agencies, as opposed to insurance carriers, bear no insurance risk. The Company is controlled by Reliance Global Holdings, LLC, a New York-based limited liability company, which is the owner and operator of numerous companies with core interests invested in real estate and insurance brokerage.
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.
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SOURCE: Reliance Global Group, Inc.