Reliance
Global Group Acquires
Premier
Health
Insurance Agency
J.P. Kush
and Associates, Inc.
LAKEWOOD,
N.J.,
May
13,
2021 --
InvestorsHub NewsWire -- 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 (in
a private placement transaction) 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