Reliance Global Group Completes Acquisition of Medigap Health Insurance Company
January 11 2022 - 8:30AM
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.
Contact:
Crescendo Communications, LLC Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com
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