Reliance Global Group Inc. has completed its acquisition of Altruis Benefit Consulting following a letter of intent between the parties as previously announced on May 8. The deal is valued at $17.4 million, according to PitchBook.
Bingham Farms-based Altruis serves customers throughout Michigan, specializing in both individual and group health insurance. Altruis generated revenue of approximately $2.5 million in 2018. The transaction was completed through a combination of $1.4 million of cash, provided by Reliance Global Holdings LLC, a company controlled by RELI CEO Ezra Beyman, as well as $4.1 million debt from an unaffiliated lender, and the issuance of approximately 11.9 million shares of restricted stock.
Insurance agencies, as opposed to carriers, bear no insurance risk.
Reliance Global Group has also transferred into RELI both Southwestern Montana Insurance, a group health insurance company providing employee benefits insurance to groups and individuals, as well as Fortman Insurance Agency LLC, which provides personal and commercial insurance lines. As previously announced in April and May 2019, respectively, Southwestern Montana Insurance and Fortman Insurance Agency LLC, had been acquired by the company’s affiliate, Reliance Global Holdings LLC.
Reliance Global Holdings LLC has transferred its ownership in the two companies to RELI, in exchange for approximately 14.8 million shares of restricted common stock. Southwestern Montana Insurance and Fortman Insurance collectively generated approximately $3.1 million of revenue in 2018.
We continue to aggressively execute on our acquisition strategy in the insurance agency sector,” Beyman said in a statement. “Since taking over control of RELI in September of 2018, we are now operating at a revenue run in excess of $7 million and have made acquisitions in excess of $16 million. In addition, we have identified numerous additional acquisitions to help further scale the business. Overall, we remain committed to identifying undervalued, and accretive transactions that leverage our national infrastructure and core expertise within the real estate and insurance markets.”