Reliance Global Group, Inc (NASDAQ:RELI) (NASDAQ:RELIW) provided an update on the pending acquisition of Spetner Associates, including a significant reduction in the upfront cash payment required to close the transaction.

Reliance Global is an InsurTech provider that leverages artificial intelligence and cloud-based technologies to transform and improve efficiencies in the insurance agency/brokerage industry.

Chair and CEO Ezra Beyman stated, "We are pleased to announce that we have revised the terms of the pending acquisition of Spetner Associates, reducing our upfront cash consideration to $5.5 million from $8 million as originally contemplated."

"As such, we believe the new terms are substantially improved for our shareholders, and provide us greater flexibility in how we fund the transaction—in order to minimize dilution and maximize returns," Beyman added.

In May 2024, Reliance Global announced the acquisition of Spetner, expecting to double the company's current revenue and generate an adjusted EBITDA of more than $4 million in 2024.

Reliance reaffirmed that the transaction remains on track and is anticipated to close, as announced, in the second half of 2024.

"Since first announcing our plans, Spetner's BenManage voluntary benefit insurance segment has experienced impressive growth, now covering over 85,000 employees, a significant increase from their 45,000 covered employees when the transaction was first announced. We could not be more excited about the continued growth in the underlying business as the acquisition is expected to nearly double our annual revenue to approximately $28 million and meaningfully boost our Adjusted EBITDA."

Price Action: RELI stock closed at $2.80 Friday.