Reliance Global Group Announces Definitive Agreement to Acquire Medigap Health Insurance Company
December 22 2021 - 5:40AM
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 entered into a definitive agreement to
acquire Medigap Health Insurance Company (“Medigap”) in an asset
purchase transaction. The acquisition is expected to close
during the first quarter of 2022, and is subject to customary
closing conditions.
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, “We are
excited to announce the upcoming acquisition of Medigap, one of the
nation’s fastest growing providers of Medicare supplemental
insurance coverage. This planned acquisition would expand our
capabilities within the Medicare supplement market, which we
believe would be a perfect complement and highly synergistic with
our existing portfolio companies. Importantly, this acquisition is
consistent with our strategy of acquiring growing, cash flow
positive agencies at attractive multiples. In addition to
bolstering our revenue by more than 70%, we believe this
transaction has the potential to be highly accretive.”
“I am also delighted to announce that following the acquisition,
Kyle Perrin will remain COO of Medigap. Kyle brings an extensive
background in the Medicare supplement market. We look forward
to his contributions as we seek to aggressively grow this business
by leveraging the deep talent and technological capabilities of
Reliance. In addition, we anticipate significant operating
synergies across the organization, which we believe will contribute
to enhanced profitability. I’d especially like to thank Jonathan
Fortman, who was recently promoted to Vice President of
Acquisitions for Reliance Global Group, for his tremendous
efforts and support, which helped make this acquisition
possible.”
Total consideration for Medigap is expected to
be approximately $19.6 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.
Contact:
Crescendo Communications, LLCTel: +1 (212) 671-1020Email:
RELI@crescendo-ir.com
1This is an unaudited revenue number provided to the Company by
the target, and it has not been independently verified by the
Company
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