- The stock price of Reliance Global Group Inc (NASDAQ: RELI) increased by over 10% during intraday trading. This is why it happened.
The stock price of Reliance Global Group Inc (NASDAQ: RELI) – an “insurtech” company focused on combining advanced technologies with the personalized experience of a traditional insurance agency – increased by over 10% during intraday trading. Investors are responding positively to Reliance Global Group announcing it has acquired J.P. Kush and Associates, which is a premier healthcare insurance agency with operations in 10 states, headquartered in Troy, Michigan. And J.P. Kush’s founder, Joshua Kushnereit, will become part of the Reliance Global family as Chief Operating Officer of the new Kush Benefits Solutions, LLC — which is now a wholly-owned subsidiary of Reliance Global Group.
Launched in 2008, J.P. Kush adds over 100 independent agents to Reliance’s agency network across the U.S., including California, Florida, Ohio, Michigan, Mississippi, New Mexico, South Carolina, Texas, Utah, and Wisconsin. And J.P. Kush has established relationships with a number of the country’s leading insurance carriers.
Kushnereit has been in the insurance industry for over 15 years and has been consistently ranked among the top insurance producers along with building a national network of agents. And Kushnereit is experienced in the complexities of the Affordable Care Act and how it affects insurance products.
“We are delighted to announce the acquisition of J.P. Kush, which brings an extensive network of over one hundred independent agents across 10 states and expands our expertise in the health insurance marketplace. Importantly, this acquisition is consistent with our strategy of acquiring growing, cash flow positive agencies at attractive multiples, where the founders are incentivized to support the long-term growth of the Company. We are pleased to welcome Joshua and his team to expand our national presence.”
“Moreover, J.P. Kush generated revenue of more than $1.1 million over the trailing twelve months with mid-double digit operating margins. Based on a purchase price of $1,950,000, we believe this transaction has the potential to be highly accretive. The purchase has been funded through a combination of cash, restricted stock and an earnout. In addition, we believe we can help to not only grow J.P. Kush’s sales, but we anticipate meaningful operating synergies.”
“In addition to the immediate synergies with our existing agency portfolio companies, the addition of J.P. Kush will support our future plans to add new insurance products to our 5minuteinsure.com platform, including health insurance policies. As we have stated previously, we believe the insurance market is ripe for disruption through digital technologies and we are working rapidly towards our goal of full commercial launch of 5minuteinsure.com. We look forward to providing further updates as we prepare to launch our full commercial site. I’d like to commend the team behind 5minuteinsure.com given the progress we have made in a short amount of time.”
— Ezra Beyman, CEO of Reliance Global Group
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