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December 23, 2021updated 05 Jan 2022 1:26pm

Reliance Global to buy Medigap Health Insurance Company

American insurance firm Reliance Global has signed a definitive agreement to acquire Medigap Health Insurance Company (Medigap).

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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
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Domiciled in Florida, Medigap is an insurance broker specializing in offering Medicare supplement insurance cover.

Reliance will pay approximately $19.6m for the deal, which includes both cash and restricted common stock of Reliance.

The acquisition is aimed at expanding Reliance’s capabilities within the Medicare supplement market while complementing its existing portfolio companies.

Reliance noted that in the 12 months that ended on 30 September 2021, Medigap recorded revenue of nearly $7m.

Medigap is expected to bolster Reliance’s revenue by 70% and has the potential to be highly accretive, the insurer added.

Reliance Global Group CEO Ezra Beyman said: “We are excited to announce the upcoming acquisition of Medigap, one of the nation’s fastest-growing providers of Medicare supplemental insurance coverage.

“We anticipate significant operating synergies across the organization, which we believe will contribute to enhanced profitability.”

Upon completion, Kyle Perrin will remain COO of Medigap who brings extensive experience in the Medicare supplement market.

The deal, which awaits regulatory approval, is expected to close in the first quarter of 2022.

In February 2020, Reliance invested in digital insurance agency Nsure and acquired a 35% stake in the insurer.

In other US insurance news, last week, Kin Insurance bought an inactive insurance carrier with a license to operate in 43 states.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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