Reliance Global Group Completes Sale of Insurance Agency for $2.625M

What Happened Reliance Global Group, Inc. (EZRA) announced it completed the sale of 100% of Southwestern Montana Insurance Center, LLC (SMI) to Scali, LLC (dba Scali Insurance Group). The closing occurred on September 11, 2026 and is being treated as effective for accounting purposes as of 12:01 a.m. MT on September 1, 2026. Consideration at closing was $2,625,000 in cash, with potential additional contingent consideration based on SMI’s EBITDA performance for the 12 months ending August 31, 2027. The company issued a press release on September 14, 2026 disclosing the transaction.

Key Details

• Cash at closing: $2,625,000, based on a multiple of 8.75x pro forma EBITDA of $300,000.
• Contingent consideration: uncapped, equal to 8.75x the amount by which EBITDA for the 12-month period ending Aug 31, 2027 exceeds $300,000, payable within 90 days after the first anniversary and subordinated per a Subordination Letter Agreement.
• Debt paydown: $1,207,324.67 of the proceeds was applied to repay outstanding principal under the company’s term loan with Oak Street Funding LLC; Oak Street released SMI as a borrower and released its liens on SMI’s assets.
• Corporate effect: SMI is no longer a subsidiary of Reliance Global Group.

Why It Matters For investors, the sale generated immediate cash proceeds used in part to reduce the company’s term loan balance, improving leverage in the near term. The divestiture removes SMI’s future revenue and earnings from Reliance’s consolidated results (effective Sept 1, 2026 for accounting), while leaving open the possibility of additional cash if SMI outperforms the specified EBITDA threshold in the following year. The filing notes no material relationship between the buyer and Reliance beyond the transaction.