Reliance Global Group Signs Definitive Agreement to Acquire Controlling Stake in Post-Quantum Cybersecurity Company Enquantum
Rhea-AI Summary
Reliance Global Group (Nasdaq: EZRA) signed a definitive agreement to acquire a 51% controlling interest in post-quantum cybersecurity company Enquantum, with an aggregate purchase price of $2,125,000 payable over ~10 months via milestone-tied tranches.
The deal implies a $2,041,667 pre-money valuation and $9.8018 per-share purchase price; initial close yields an 8% fully diluted stake (including conversion of a $166,000 bridge note). Closing expected within 30 days and remains subject to customary conditions.
Positive
- Acquisition targets a 51% controlling stake with $2,125,000 aggregate purchase price
- Deal structured as milestone-tied tranches over ~10 months, aligning payments with execution
- Initial 8% fully diluted ownership at closing, enabling immediate strategic influence
- Enquantum holds a 2025 patent for FPGA-based quantum-resistant encrypted communications
Negative
- Reliance must satisfy monthly milestones to reach full 51% control, creating execution risk
- Final control top-up expected via issuance of Reliance common stock, implying potential dilution
Key Figures
Market Reality Check
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Strategy launch | Positive | -7.8% | Launch of Scale51 model for 51% stakes via EZRA International Group. |
| Feb 02 | Operating metric update | Positive | -14.2% | 36% YoY increase in personal lines P&C written premium through RELI Exchange. |
| Feb 02 | Operating metric update | Positive | -14.2% | 72% increase in health insurance policies written during 2025 open enrollment. |
| Jan 30 | Operating metric update | Positive | +9.8% | Reported 72% YoY rise in health policies and broker network expansion. |
| Jan 29 | Equity offering | Neutral | +5.8% | Closed $2.0M public offering of shares and warrants for general purposes. |
Recent strategic and operating updates often saw negative or mixed next-day moves, including declines following positive growth metrics.
Over the past weeks, Reliance issued several updates highlighting growth and capital actions. On Jan 29, it closed a $2.0M public offering. Subsequent releases on Jan 30 and Feb 2 detailed a 72% increase in health policies and a 36% rise in P&C written premiums, yet shares fell around these dates. On Feb 4, Reliance launched the Scale51 model for 51% tech acquisitions, also followed by a drop. Today’s Enquantum deal operationalizes that strategy.
Market Pulse Summary
This announcement details Reliance’s definitive agreement to acquire a 51% controlling stake in Enquantum for $2,125,000 over about 10 months, following the recently launched Scale51 strategy. It marks a transition from framework to execution in post-quantum cybersecurity. Investors may track milestone achievement, ownership step-ups from 8% to 51%, and commercialization of Enquantum’s NIST-aligned, FPGA-based solutions alongside prior operating growth at RELI Exchange.
Key Terms
post-quantum cryptography technical
quantum-enabled attacks technical
post-quantum security technical
fpga-based technical
quantum-resistant technical
AI-generated analysis. Not financial advice.
Reliance Anticipated to Become a Majority Owner in a Quantum-Resilient Cybersecurity Company as Adoption is Expected to Accelerate
LAKEWOOD, N.J., Feb. 09, 2026 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: EZRA) (“we,” “us,” our,” the “Company” or “Reliance”) today announced that it has signed a definitive agreement to acquire over time a controlling interest in Enquantum Ltd., a post-quantum cryptography technology company addressing a rapidly developing shift in global cybersecurity standards. The agreement follows Reliance’s previously announced term sheet and although ongoing, we believe our due diligence review of Enquantum is largely complete and has reinforced our belief in this acquisition. We expect the transaction to close within 30 days. This definitive agreement follows the Company’s recent announcement of the launch of its Scale51 operating and acquisition strategy, and is subject to customary closing conditions.
The continued advancement of quantum computing is intensifying scrutiny of existing cryptographic standards, as quantum-enabled attacks may compromise widely deployed encryption methods that underpin modern digital infrastructure. The Company believes the transition to post-quantum security is shifting from theoretical planning to near-term deployment decisions, driving increased urgency across governments, enterprises, and infrastructure operators responsible for protecting sensitive data, communications, and mission-critical systems. We believe these decisions are increasingly relevant across financial services, cloud and AI infrastructure, global communications networks, and public-sector systems, including insurtech platforms, where encryption underpins day-to-day operations. This accelerating demand underscores the strategic timing of Scale51’s focus on control-oriented acquisitions in high-impact technology markets.
Under the agreement, in exchange for certain milestone payments, Reliance will acquire a
The transaction directly aligns with the Company’s Scale51 operating model, which emphasizes majority ownership paired with hands-on support across execution, governance alignment, and U.S. market expansion. Upon closing, we anticipate Enquantum will become the first operating platform within EZRA International Group’s technology portfolio. Enquantum is developing hardware-accelerated, NIST-aligned post-quantum cryptographic solutions designed to address the performance, latency, and throughput constraints that can limit software-only approaches. Its architecture is built to support high-throughput and terabit-scale network environments, enabling organizations to transition toward post-quantum security while preserving operational performance. In 2025, Enquantum was granted a patent covering FPGA-based encrypted communications utilizing quantum-resistant techniques, strengthening its intellectual property position and technical differentiation.
Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, stated, “We believe Enquantum’s technology is designed to address a real and growing requirement for post-quantum security in performance-sensitive environments. With this definitive agreement and our ability to acquire a
Moshe Fishman, Senior Vice President, Strategic Ventures, added, “Post-quantum cryptography is no longer a purely academic concern. Enquantum’s hardware-accelerated approach is designed to integrate into existing network architectures while maintaining the performance standards required by enterprise, infrastructure, and public-sector operators. We believe this execution-focused design is well aligned with how adoption is beginning to take shape. Upon closing and achievement of predefined milestones, Reliance expects to hold a controlling equity position, further reinforcing EZRA’s Scale51 platform as an active, execution-oriented growth platform rather than a passive investment approach.”
Reliance views post-quantum cybersecurity as an opportunity across infrastructure-intensive markets, including large-scale data centers, regulated financial systems, global communications networks, and public-sector environments where performance, resilience, and compliance are critical. Through the Scale51 framework, the Company intends to provide hands-on operational support and disciplined capital allocation as Enquantum advances product development, commercialization, and market expansion. Upon closing, Reliance expects to provide strategic and operational influence over product development, commercialization, and market expansion initiatives as Enquantum advances execution through the EZRA International Group platform.
The transaction remains subject to customary closing conditions, including ongoing due diligence. Reliance will provide additional updates as appropriate and in accordance with applicable disclosure requirements.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: EZRA) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products.
In addition to its insurance and Insurtech operations, Reliance operates EZRA International Group, its strategic growth platform focused on identifying, acquiring, and building majority or controlling stakes in high-growth technology companies. EZRA International Group is designed to complement Reliance’s core insurance business by expanding market reach and supporting long-term shareholder value creation through disciplined capital allocation and active ownership.
Further information about the Company can be found at https://www.relianceglobalgroup.com.
Further information about the Company can be found at https://www.relianceglobalgroup.com.
No Offer or Solicitation. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of words or expressions such as “may,” “should,” “could,” “would,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “continue,” “seek,” “potential,” “target,” or similar expressions.
Forward-looking statements in this press release include, without limitation, statements regarding: the Company’s ability to acquire, over time, a controlling equity and governance interest in Enquantum Ltd. pursuant to the definitive share purchase agreement; the timing, structure, funding and completion of milestone-based tranches and the final control top-up; the Company’s ability to satisfy or waive applicable closing conditions; anticipated board composition and governance rights following the achievement and funding of specified milestones; the development, performance, scalability, commercialization and market adoption of Enquantum’s post-quantum cryptographic technology; the size, growth, timing and evolution of the post-quantum cybersecurity market; the Company’s ability to fund and execute its Scale51 acquisition strategy and integrate Enquantum within EZRA International Group; the anticipated strategic, operational and financial benefits of the transaction; and the Company’s broader business strategy, capital allocation priorities and growth outlook.
These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, without limitation: the risk that the transaction with Enquantum is delayed, modified, restructured or not consummated on anticipated terms or at all; the failure to satisfy applicable closing conditions or milestone criteria; the risk that ongoing or remaining due diligence identifies matters that result in changes to transaction terms, delays in closing or the failure to consummate the transaction; the Company’s ability to fund future tranche payments on anticipated timelines or at all; the risk that the Company does not achieve a controlling equity or board position; risks related to Enquantum’s technology development, performance, commercialization or market adoption; integration, execution and management challenges associated with acquiring integrating and scaling an early-stage technology company, including the risk that anticipated synergies or operational benefits are not realized on expected timelines or at all; cybersecurity, regulatory and data-protection risks; the Company’s ability to access capital on acceptable terms or at all; and general business, economic, market, interest rate and geopolitical conditions.
Actual results may differ materially from those expressed or implied by these forward-looking statements. Additional information regarding factors that may cause actual results to differ materially is included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as amended, and in the Company’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances after the date of this press release.
Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: EZRA@crescendo-ir.com
FAQ
What stake will Reliance (EZRA) acquire in Enquantum and on what timeline?
How much is Reliance paying for the 51% fully diluted ownership in Enquantum (EZRA)?
What conditions could prevent the EZRA-Enquantum transaction from closing within 30 days?
What governance rights will Reliance (EZRA) obtain at Enquantum after closing?
What technology and IP does Enquantum bring to EZRA’s Scale51 strategy?
