RELIW - Reliance Global Group Announces Letter of Intent for Most Significant Acquisition to Date | Benzinga
Post acquisition, Reliance's revenue expected to increase greater than 100%
Attractive consolidated EBITDA returns expected for FY'24 and beyond
LAKEWOOD, N.J., Nov. 21, 2023 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (NASDAQ:RELI, RELIW)) ("Reliance", "we" or the "Company"), today announced it has entered into a Letter of Intent (LOI) to acquire a well established benefits enrollment company (the "Target"). The Target is a leading provider of voluntary benefits to approximately 45,000 employees throughout the United States and utilizes cutting-edge technology, setting them apart in the industry. The acquisition is subject to the execution of a definitive agreement and other customary closing conditions. The transaction is expected to close in the first quarter of 2024.
Ezra Beyman, CEO of Reliance, commented, "We are excited to announce our most significant planned acquisition to date, which would more than double our current revenue and provide attractive EBITDA returns. During fiscal year 2024, the Target is expected to generate over $21 million in revenue, increasing Reliance's expected consolidated revenue by more than 100% to $35 million, which should result in very significant cash flow for the combined companies in 2024 and beyond. This business offers a number of unique voluntary benefits programs across many industries, which will enhance Reliance's overall product offerings. We are very energized about this opportunity and believe that onboarding this target into the Reliance family will ...