Reliance Global falls on deal to acquire Medigap Health Insurance

Reliance Global

22/12/2021 11:38

** Shares of insurance REIT Reliance Global Group Inc
 RELI.O  down 4.6% at $5.20 premarket; co to acquire insurance
brokerage Medigap Health Insurance Company 
    ** Stock extends gains from the previous session
    ** Deal valued at $19.6 mln in cash and restricted common
stock of RELI  urn:newsml:reuters.com:*:nGNX5D49Gt
    ** Transaction is expected to close in Q1 2022
    ** Florida-based Medigap specializes in Medicare supplement
insurance; it generated a revenue of $7 mln in the twelve months
ended Sept. 30
    ** "We believe this transaction has the potential to be
highly accretive" - RELI CEO 
    ** Up to Tuesday's close, stock down 15.22% YTD

 (Reporting by Sohini Podder in Bengaluru)
 ((sohini.podder@thomsonreuters.com))