Reliance Global Group Inc (NASDAQ:EZRA) saw its stock jump 28% in premarket trading on Monday after completing the acquisition of Enquantum Ltd., a company focused on post-quantum cryptographic solutions.
The transaction represents the first platform acquisition executed under Reliance's Scale51 operating model and establishes a staged path that could lead to majority ownership of Enquantum. As part of the agreement, Reliance took an initial equity position by converting a secured bridge note and made an additional cash investment as the first milestone payment.
The structure of the deal is based on milestone-driven tranche investments. These tranches are designed to increase Reliance's ownership to a 51% fully diluted controlling interest, contingent on the target meeting specified operational and commercialization milestones. Reliance has stated it expects to obtain majority governance rights once the agreed milestones are achieved and funded.
Enquantum's technology portfolio centers on hardware-accelerated, NIST-aligned post-quantum cryptographic solutions intended for high-throughput environments. The company's architecture is engineered to operate at terabit scale while avoiding degradation in latency. In 2025, Enquantum was granted a patent related to FPGA-based encrypted communications that employ quantum-resistant techniques.
The acquisition arrives amid warnings from security agencies and industry experts about "harvest now, decrypt later" strategies, in which encrypted data is captured now with the expectation it could be decrypted in the future by more advanced quantum systems. At the same time, the U.S. National Institute of Standards and Technology is advancing post-quantum cryptographic standards to support what is described as a multi-year infrastructure upgrade cycle.
"We structured a milestone-driven acquisition pathway designed to culminate in majority control ownership, and today we executed Phase I," said Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group.
Reliance has highlighted the broader market context as well, noting projections that global cybersecurity spending could exceed $300 billion annually by 2029. The company views the shift toward quantum-resilient encryption as a potential structural change within the cybersecurity landscape.
While the transaction lays out a route to majority governance through staged investments tied to measurable goals, Reliance's ultimate control depends on future milestone achievements and associated funding.