{"id":861446,"date":"2025-06-17T11:48:02","date_gmt":"2025-06-17T15:48:02","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/reliance-global-group-signs-letter-of-intent-to-sell-fortman-insurance-for-5-million-in-cash\/"},"modified":"2025-06-17T11:48:02","modified_gmt":"2025-06-17T15:48:02","slug":"reliance-global-group-signs-letter-of-intent-to-sell-fortman-insurance-for-5-million-in-cash","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/reliance-global-group-signs-letter-of-intent-to-sell-fortman-insurance-for-5-million-in-cash\/","title":{"rendered":"Reliance Global Group Signs Letter of Intent to Sell Fortman Insurance for $5 Million in Cash"},"content":{"rendered":"

\nTransaction highlights strategic execution and unlocks capital for highly accretive Spetner Acquisition
\n<\/h2>\n
\n

LAKEWOOD, NJ, June 17, 2025 (GLOBE NEWSWIRE) — Reliance Global Group<\/b>, Inc.<\/b><\/a> (Nasdaq: RELI)<\/b> (\u201cReliance,\u201d \u201cwe,\u201d \u201cus,\u201d \u201cour\u201d or the \u201cCompany\u201d) today announced it has signed a non-binding Letter of Intent (LOI) to sell Fortman Insurance Agency (\u201cFortman\u201d), a wholly owned subsidiary for $5 million in cash. The contemplated sale price represents a meaningful premium over the original acquisition cost, underscoring the Company\u2019s ability to acquire, improve, and opportunistically monetize assets to drive shareholder value.<\/p>\n

Since acquiring Fortman, Reliance has implemented operational enhancements, upgraded internal systems, and established a strong leadership team. As a result, Fortman has evolved into a well-capitalized, efficiently run agency with a growing customer base and enhanced market presence.<\/p>\n

Ezra Beyman, CEO of Reliance, commented, \u201cThe potential sale of Fortman demonstrates our disciplined capital allocation strategy and commitment to value creation. We acquired Fortman at a compelling valuation, strengthened its operations, and are now positioned to realize a meaningful return. This contemplated transaction reflects our ability to execute and supports our broader goal of building a highly profitable and focused organization. Not only does the sale price represent a premium to what we paid for Fortman, but it also adds substantial cash to our balance sheet\u2014an especially notable achievement in light of our current market capitalization. We believe that this highlights the substantial underlying value embedded across our broader portfolio.\u201d<\/p>\n

Proceeds from the sale are expected to support Reliance\u2019s planned acquisition of Spetner Associates (\u201cSpetner\u201d), a rapidly growing and synergistic insurance platform. As highlighted in previous announcements, Spetner has experienced robust growth in recent years and is expected to generate strong cash flow at both the subsidiary and parent company levels. The Company believes Spetner will integrate seamlessly into Reliance\u2019s operations under the OneFirm strategy.<\/p>\n

\u201cBy monetizing Fortman at a premium, we are building internal cash reserves that are intended to advance the Spetner acquisition,\u201d added Beyman. \u201cThis strategy reflects our commitment to enhancing shareholder value while pursuing transformative and accretive growth opportunities. We believe replacing our Fortman subsidiary with Spetner aligns with our long-term vision for scale, synergy, and sustained cash flow generation.\u201d<\/p>\n

The LOI is non-binding and subject to customary due diligence and negotiation of definitive documentation. The Company will provide additional updates as the transaction progresses.<\/p>\n

\n About Reliance Global Group, Inc.<\/b>\n <\/p>\n

Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency\/brokerage industry. The Company\u2019s business-to-business InsurTech platform, RELI Exchange<\/a>, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company\u2019s business-to-consumer platform, 5minuteinsure.com<\/a>, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance.\u00a0 In addition, the Company operates its own portfolio of select retail \u201cbrick and mortar\u201d insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https:\/\/www.relianceglobalgroup.com<\/a>. <\/p>\n

\n Forward-Looking Statements<\/b>\n <\/p>\n

This press release contains \u201cforward-looking statements\u201d within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by terminology such as \u201cmay,\u201d \u201cshould,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cwill,\u201d \u201cexpect,\u201d \u201canticipate,\u201d \u201cintend,\u201d \u201cplan,\u201d \u201cbelieve,\u201d \u201cestimate,\u201d \u201ccontinue,\u201d \u201cpotential,\u201d and similar expressions. Forward-looking statements in this press release include, without limitation, statements regarding:<\/p>\n