NU RIDE ANNOUNCES AGREEMENT TO ACQUIRE MAJORITY STAKE IN AFFINITY ADVISORY NETWORK

Nu Ride Inc. has announced its entry into a Membership Interest Purchase Agreement to acquire the outstanding membership interests of Affinity Advisory Network, LLC and AAN Wealth Advisors, LLC for approximately $9.6 million. The transaction, which is expected to close in the third quarter of 2026, will be financed through a combination of $6.72 million in cash, 80,000 shares of Nu Ride Class A common stock, and potential future earnout payments of up to $1.312 million. This acquisition marks a significant step for Nu Ride as it integrates Affinity into its operations.

Founded in 2013 and based in Ohio, Affinity operates as an independent Field Marketing Organization, providing a platform that combines insurance distribution and registered investment advisory services. The company supports a vast network of agents and advisors, serving clients in over 700 cities across the United States. Affinity has developed proprietary systems for advisor training, lead generation, and client relationship management, which are designed to foster scalable growth and enhance recurring client engagement. For the 12 months ending March 31, 2026, Affinity reported revenues exceeding $3.5 million.

The strategic rationale behind Nu Ride's acquisition of Affinity lies in the latter's differentiated and scalable platform, which combines insurance and wealth management capabilities. Nu Ride's CEO, Alexander Matina, emphasized the attractive nature of the acquisition, highlighting Affinity's strong operating margins and the potential for organic and inorganic growth opportunities. The integrated platform and national distribution footprint of Affinity are expected to position Nu Ride favorably within the growing sectors of retirement planning and independent financial advisory services.

Following the transaction, Robert Hall, the Founder and President of Affinity, will retain a 15% ownership interest and continue to lead the company. This arrangement is intended to ensure continuity in leadership and operational strategy, facilitating the expansion of Affinity's advisor network and client relationships while maintaining its high-touch service model.

The acquisition of Affinity Advisory Network by Nu Ride reflects broader trends in the financial services sector, where consolidation is becoming increasingly common. As firms seek to enhance their service offerings and expand their market reach, transactions like this one may signal a shift towards integrated platforms that provide comprehensive financial solutions. The anticipated growth in retirement planning and wealth preservation services further underscores the potential for this acquisition to contribute positively to Nu Ride's long-term strategic objectives.