Brokerage insurtech Reliance Global to sell Fortman agency for $5 million

By Michael Loney

June 17 - (The Insurer) - Nasdaq-listed insurtech Reliance Global Group has agreed to sell its Fortman Insurance Agency subsidiary for $5 million in cash, and has pulled an offering of its shares.

Reliance filed a request for withdrawal of its Form S-1 that was originally filed on January 10, 2025. The company said that it “no longer intends to pursue a public offering under the registration statement at this time.”

The S-1 said that Reliance’s focus “is to grow the company by pursuing an aggressive acquisition strategy, initially and primarily focused upon wholesale and retail insurance agencies.”

The Lakewood, New Jersey-based company has signed a non-binding letter of intent to sell Fortman Insurance Agency for $5 million in cash.

Reliance said the contemplated sale price represents a “meaningful premium” over the original acquisition cost.

Proceeds from the sale are expected to support Reliance’s planned acquisition of Spetner Associates, a benefits enrollment company.

At the time the Spetner acquisition was announced in May last year, Reliance said the deal would double its revenue to approximately $28 million. The acquisition has taken longer to close than Reliance originally anticipated.

The S-1 said that the original acquisition agreement was for Reliance to acquire 80% of Spetner for $13.7 million with an option to acquire the remaining 20% for a predetermined amount based on a multiple of 10 of Ebitda.