Reliance Global Group Acquires Premier Health Insurance Agency J.P. Kush and Associates, Inc.
May 13 2021 - 9:00AM
via NewMediaWire --
Reliance Global Group,
Inc. (Nasdaq: RELI; RELIW), an “insurtech” company
focused on combining advanced technologies with the personalized
experience of a traditional insurance agency, today announced it
has acquired J.P. Kush and Associates, Inc., a premier healthcare
insurance agency with operations in 10 states, headquartered in
Troy, Michigan. J.P. Kush’s founder, Joshua Kushnereit, will become
part of the Reliance Global family as Chief Operating Officer of
the new Kush Benefits Solutions, LLC, which is now a wholly owned
subsidiary of Reliance Global Group, Inc.
Founded in 2008, J.P. Kush adds over 100 independent agents to
Reliance’s agency network across the United States, including
California, Florida, Ohio, Michigan, Mississippi, New Mexico, South
Carolina, Texas, Utah and Wisconsin. J.P. Kush has
established relationships with a number of the country’s leading
insurance carriers. In 2019 and 2020, J.P. Kush was ranked as the
most active agency writing policies with Molina Healthcare, Inc. in
the State of Michigan.
Mr. Kushnereit has been in the insurance industry
over 15 years and has been consistently ranked among the top
insurance producers, in addition to building a national network of
agents. Mr. Kushnereit is experienced in the complexities of the
Affordable Care Act and how it affects insurance products.
Ezra Beyman, CEO of Reliance Global Group, commented, “We are
delighted to announce the acquisition of J.P. Kush, which brings an
extensive network of over one hundred independent agents across 10
states and expands our expertise in the health insurance
marketplace. Importantly, this acquisition is consistent with our
strategy of acquiring growing, cash flow positive agencies at
attractive multiples, where the founders are incentivized to
support the long-term growth of the Company. We are pleased to
welcome Joshua and his team to expand our national presence.
Moreover, J.P. Kush generated revenue of more than $1.1 million
over the trailing twelve months with mid-double digit operating
margins. Based on a purchase price of $1,950,000, we believe
this transaction has the potential to be highly accretive. The
purchase has been funded through a combination of cash, restricted
stock and an earnout. In addition, we believe we can help to not
only grow J.P. Kush’s sales, but we anticipate meaningful operating
synergies.”
“In addition to the immediate synergies with our
existing agency portfolio companies, the addition of J.P. Kush will
support our future plans to add new insurance products to
our 5minuteinsure.com platform, including health
insurance policies. As we have stated previously, we believe
the insurance market is ripe for disruption through digital
technologies and we are working rapidly towards our goal of full
commercial launch of 5minuteinsure.com. We look forward to
providing further updates as we prepare to launch our full
commercial site. I’d like to commend the team behind
5minuteinsure.com given the progress we have made in a short amount
of time.”
Additional details on the transaction are
available in the Company’s Form 8-K, to be filed with the
Securities and Exchange Commission within four business days of
closing the transaction.
About Reliance Global Group,
Inc.
Reliance Global Group, Inc. (NASDAQ: RELI, RELIW)
is an insurtech company 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 through 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.
Contact:
Crescendo Communications, LLC Tel: +1 (212)
671-1020 Email: RELI@crescendo-ir.com
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