The latest business deals news from Reliance Global Group;
Reliance Global Group, Inc. (Nasdaq: EZRA) (“Reliance,” “EZRA” or the “Company”), an InsurTech company leveraging artificial intelligence, cloud computing and advanced technologies to transform the insurance agency/brokerage industry, today announced that it has entered into a non-binding letter of intent (the “LOI”) to sell the assets of its Altruis Benefit Consulting (“Altruis”) subsidiary, a Michigan-based health insurance agency and benefits consulting business, for $11 million in cash.
The transaction would transform the Company’s balance sheet, retiring all of its term debt while adding a substantial amount of cash, without issuing a single share of stock. The LOI is non-binding, and there can be no assurance that definitive agreements will be executed or that the proposed transaction will be completed on the terms described, on the contemplated timeline, or at all.
Key Terms and Expected Impact
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$11 million in cash for a single subsidiary. Reliance would retain its proprietary AI platform, RELI Exchange and its other insurance operations. Approximately $9.35 million would be paid at closing, with $1.65 million held in an interest-bearing escrow account, the remaining balance of which, plus accrued interest, would be released to the Company 18 months after closing.
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Approximately $7.6 million of incremental cash. After fully repaying its Oak Street Funding term loan — the Company’s only term debt of approximately $4.4 million. The transaction is expected to generate approximately $7.6 million of incremental cash in the aggregate: approximately $5 million of net proceeds at closing, before transaction expenses and any taxes; approximately $1.0 million of cash released from restriction as loan collateral; and $1.65 million upon release of the indemnification escrow 18 months after closing.
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Zero dilution. The entire purchase price is payable in cash — not buyer stock, not a seller note, not an earnout.
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Interest expense eliminated. Repaying the term loan would eliminate the entire principal and interest expense — approximately $1 million annually — making that cash available for operations and growth.
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Targeted closing. The parties are targeting a closing within the next 60 days, subject to customary closing conditions.
Strategic Rationale
The proposed sale would mark a significant step in the portfolio strategy Reliance launched in 2025: monetizing mature insurance distribution assets and redeploying that capital into the Company’s future growth opportunities. Altruis is a profitable, well-run business that has grown under Reliance’s ownership, and the proposed price reflects the value the Company built there. With the proceeds, Reliance would fund the continued build-out of its AI platform, launched in July 2026, and its RELI Exchange InsurTech network, while retaining its other insurance operations and their recurring commission revenue.
“We believe that this proposed transaction speaks for itself: an $11 million all-cash price for one of our subsidiaries underscores the value of the business we have built at Reliance,” said Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group. “If completed, this sale would allow us to convert a portion of that value into cash and put it to work in the areas we believe offer the greatest growth potential — our AI platform and our RELI Exchange network.”
“If completed as contemplated, Reliance would emerge with no term debt, a substantially stronger cash position, and not one new share issued,” Mr. Beyman continued. “Very few companies of our size get the opportunity to reset their balance sheet this decisively without dilution. We intend to move quickly toward definitive agreements and a targeted closing, and we look forward to updating shareholders on our progress.”
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