Reliance Global Group provides update on pending Spetner acquisition

Reliance Global Group provided an update on the pending acquisition of Spetner Associates, which has taken longer to complete than anticipated.

As background, Reliance, a public company since 2021, announced in March that it had entered into a definitive agreement to acquire Spetner Associates, a benefits enrollment company. Spetner, through its BenManage benefits enrollment company, provides voluntary benefits to over 75,000 employees throughout the US.

“We are excited to share that the anticipated impact of the pending Spetner Associates acquisition is surpassing our initial expectations. Spetner’s BenManage voluntary benefit insurance segment has expanded significantly, now covering 85,000 employees—a phenomenal increase from the 45,000 employee lives it covered at the time we first announced the acquisition. While the transaction and due diligence have taken time to complete, we could not be more excited about the continued growth in the underlying business. This is expected to be the largest acquisition in the Company’s history and is set to be a key inflection point for Reliance, projected to double our annual revenues to an estimated $28 million.

Our ultimate goal is to build a highly profitable business that delivers substantial returns to our shareholders. We are confident that this transformational acquisition will open up significant opportunities that align perfectly with our ‘OneFirm’ go-to-market strategy. We are committed to establishing Reliance as a powerful, technology-driven enterprise that prioritizes sustainable profitability, as well as increased shareholder value, and believe that the acquisition of Spetner Associates will significantly accelerate our growth.”

– Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group.

The company currently anticipates that the acquisition will close in the second half of 2024.

Bottom Line: The numbers don’t add up.