Reliance Global Group, Inc. (Nasdaq: EZRA) has completed the sale of its Southwestern Montana Insurance Center subsidiary to Scali, LLC, dba Scali Insurance Group. The transaction closed on September 11, 2026, with an accounting effective date of September 1, 2026. Under the terms of the Purchase and Contribution Agreement, the buyer acquired 100% of the issued and outstanding membership interests of Southwestern Montana Insurance Center, LLC (SMI), along with its book of insurance business and other tangible and intangible assets.
The Company received $2,625,000 in cash at closing. This amount was determined through arm’s-length negotiation based on a multiple of 8.75 times pro forma EBITDA of $300,000. In addition to the cash payment, the transaction includes an uncapped contingent consideration. This earnout is calculated as 8.75 times the amount by which the acquired business’s EBITDA exceeds $300,000 for the twelve-month period ending August 31, 2027. If earned, this consideration is payable within 90 days following the first anniversary of the closing and is subordinated pursuant to a related Subordination Letter Agreement.
In connection with the closing, Reliance applied $1,207,324.67 of the transaction proceeds to the repayment of outstanding principal under its term loan with Oak Street Funding LLC. As a result of this repayment, Oak Street released SMI as a borrower under the credit documents and released its security interests and liens on the subsidiary’s assets.
Reliance stated that the sale is part of its portfolio monetization strategy, which was launched in 2025. The Company intends to use the proceeds to strengthen its balance sheet, accelerate the repayment of debt, and redeploy capital into its proprietary AI platform, RELI Exchange, and other technology initiatives. The sale of Southwestern Montana Insurance Center is in addition to the previously announced pending sale of Altruis Benefit Consulting, a Michigan-based agency.
