Reliance Global Group completes sale of Altruis for $8M

Lakewood, N.J. - Reliance Global Group Inc. (NASDAQ:EZRA) finalized the sale of Altruis Benefit Consulting for $8 million in cash plus a potential $1 million earnout over three years, according to the press release. The deal, concluded on September 23, saw the Michigan-based health insurance agency and benefits consulting firm transferred for about $7.5 million in cash, with $461,729 retained as indemnity and working capital holdbacks.

A $3.1 million secured promissory note from the buyer was fully paid off on September 30. The potential earnout payments could be collected over three years following the deal, dependent on the acquired business's annual revenue growth. This marks the second non-core agency sale in September for Reliance, following the earlier sale of Southwestern Montana Insurance Center on September 11.

The transaction, completed without issuing any Reliance common stock, aligns with the company's strategy to monetize non-core insurance agency assets, bolstering its balance sheet and reinvesting capital into its AI platform and RELI Exchange network. Reliance Global Group is an InsurTech company leveraging artificial intelligence and cloud computing within the insurance agency and brokerage sector.