Reliance Global (NASDAQ: RELI) stock soared during intraday trading Wednesday after the company provided an update on the pending acquisition of Spetner Associates.
Reliance Global recently announced that it will close its anticipated acquisition of Spetner Associates in the second half of 2024. The company expects this acquisition to double its annual revenues to an estimated $28 million.
Ezra Beyman, Chairman and CEO of Reliance Global Group, expressed optimism about the acquisition’s potential impact. He stated,
“We are excited to share that the anticipated impact of the pending Spetner Associates acquisition is surpassing our initial expectations.”
He highlighted the significant expansion of Spetner’s BenManage voluntary benefit insurance segment, which now covers 85,000 employees, up from 45,000 at the time of the acquisition announcement.
Beyman continued,
“While the transaction and due diligence have taken time to complete, we could not be more excited about the continued growth in the underlying business.”
This acquisition marks the largest in Reliance Global’s history and Beyman sees this as a pivotal moment for the company, potentially doubling its annual revenues.
Beyman concluded,
“Our ultimate goal is to build a highly profitable business that delivers substantial returns to our shareholders. We are confident that this transformational acquisition will open up significant opportunities that align perfectly with our ‘OneFirm’ go-to-market strategy. We are committed to establishing Reliance as a powerful, technology-driven enterprise that prioritizes sustainable profitability, as well as increased shareholder value, and believe that the acquisition of Spetner Associates will significantly accelerate our growth.”
Reliance Global (NASDAQ: RELI) Stock Reaction
On Wednesday, RELI stock surged 76.17%, closing at $0.39, marking a 69.31% increase for the week. The trading volume was 394,848,480 shares, significantly higher than the average daily volume of 7.75 million.
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