Business
Reliance Global Group Completes Acquisition of Medigap Health Insurance Company
Acquisition grows the Company’s footprint across 47 states and expands offering within the Medicare supplement insurance market LAKEWOOD, N.J., Jan. 11, 2022
About this update from Reliance Global Group, Inc.
[{"type":"text","content":"Acquisition grows the Company’s footprint across 47 states and expands offering within the Medicare supplement insurance market LAKEWOOD, N.J., Jan. 11, 2022 (GLOBE NEWSWIRE) -- 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 ...