Reliance Global Group, Inc. has finalized the sale of its subsidiaries, Employee Benefits Solutions, LLC and U.S and Benefits Alliance, LLC, located in Cadillac, Michigan.
The proceeds from the sale are being allocated to a debt rationalization program and reinvestment, aiming to improve financial flexibility for accelerating new programs.
This transaction is part of a comprehensive balance sheet rationalization program to enhance the company's ability to execute new initiatives.
Strategic Sale Completion
Reliance Global Group successfully completed the strategic sale of its non-core subsidiaries, focusing on areas with higher return potential.
Debt Reduction
Approximately $6 million of long-term debt has been reduced, enhancing the company's financial position and investment capacity.
Reinvestment Strategy
The net proceeds are to be reinvested in strategic business initiatives, particularly in RELI Exchange and 5minuteinsure.com platforms.
- The sale of EBS and USBA business units marks a strategic shift towards core, technology-forward platforms within Reliance Global Group.
- With the debt reduction and planned reinvestment, the company anticipates greater scaling, improved competitive positioning, and increased ability to pursue high-return opportunities.
- This transaction strengthens the company's balance sheet, facilitating enhanced investment capacity and the ability to capitalize on future growth prospects.
The completion of the strategic sale and allocation of proceeds demonstrate Reliance Global Group's commitment to optimizing its portfolio for higher returns and sustainable growth. The company's focus on efficient, technology-driven platforms signals a strategic alignment with future industry trends and growth opportunities.