Reliance Global Group Enters LOI to Sell Altruis Benefit Consulting for $11 Million in Cash
Reliance Global Group has entered into a non-binding letter of intent (LOI) to sell its subsidiary, Altruis Benefit Consulting, for $11 million in cash. The transaction is expected to generate approximately $7.6 million in incremental cash after retiring the company's term debt. This all-cash deal would allow Reliance to invest further into its AI platform and RELI Exchange InsurTech operations without issuing new shares. The sale involves paying around $9.35 million at closing, with an additional $1.65 million held in escrow for 18 months before release. The company plans to use the proceeds from this transaction to eliminate its annual interest expense of about $1 million and fund future growth initiatives. Reliance aims to close the deal within 60 days. The strategic move aligns with Reliance's portfolio strategy launched in 2025, focusing on monetizing mature insurance assets while reinvesting capital into AI-driven technologies.
Tickers: $RELI
Topics: AI Platform Investment Balance Sheet Optimization InsurTech