Summary by Futu AI
Reliance Global Group, Inc. has entered into a definitive agreement to acquire Spetner Associates, a prominent benefits enrollment company. Announced on May 14, 2024, the agreement stipulates that Reliance will acquire 80% of Spetner's common stock for $13.7 million, with an option to purchase the remaining 20% based on Spetner's EBITDA. The acquisition, which is subject to customary closing conditions, is expected to more than double Reliance's revenue, with Spetner projected to contribute over $14 million in revenue and an Adjusted EBITDA of more than $4 million in 2024. Reliance also plans to raise approximately $10 million through a private or public offering of its common stock to support the transaction. The acquisition aligns with Reliance's strategy to enhance its portfolio and reshape the insurance industry through technology-driven solutions. Spetner's BenManage platform is noted for streamlining HR processes and offering voluntary benefits to over 75,000 employees in the U.S. The integration is anticipated to drive significant EBITDA growth and shareholder value.