LAKEWOOD, N.J., May 3, 2019 /PRNewswire/ -- Reliance Global Group, Inc. (OTC: RELI) ("RELI" or the "Company"), is pleased to announce that RELI's affiliated privately-owned company Reliance Global Holdings, LLC has completed the previously announced acquisition of an unaffiliated insurance agency, Fortman Insurance Agency, LLC, for a total purchase price of $4.138 million, consisting of cash and the issuance of restricted stock. Insurance agencies, as opposed to carriers, bear no insurance risk.
As RELI is in the process of completing its audited financial statements, in order to become a SEC- reporting issuer, this acquisition was purchased by Reliance Global Holdings, LLC, and will be transferred into RELI upon the successful completion of the audit.
Headquartered in Ohio, Fortman serves customers throughout the entire State of Ohio. Fortman specializes in providing personal and commercial lines of insurance. For the fiscal year ended December 31, 2018, Fortman had written premiums of approximately $21,000,000 and revenues of $1,600,000 (unaudited). Reliance LLC, which is controlled by Ezra Beyman, RELI's Chairman and CEO, funded the transaction through a combination of cash, stock and debt financing.
This is the fifth acquisition since Reliance LLC acquired control of RELI in September 2018 and is in line with management's growth strategy of completing acquisitions in a timely manner. Additionally, RELI is in the approval process of assuming the loan of the 19 properties previously placed under LOI.
Ezra Beyman, RELI's CEO, stated, ''We are delighted with RELI's continuing to make acquisitions in the insurance agency space, as well as our vision to grow our independent agencies, and we intend to continue to make acquisitions in the real estate sector as well."
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.
SOURCE Reliance Global Group, Inc.