Kingsway raised $15.7M to accelerate acquisitions activity

Kingsway Financial Services Inc., the only publicly traded U.S. company employing the SF model to acquire and build great businesses, has closed a $15.7M private placement of 1,336,264 shares of its common stock at a price of $11.75 per share. The funds raised, combined with operating cash flow and capital from other non-dilutive sources, will provide Kingsway with the financial resources to execute on its multi-year growth ambitions.

“It’s time to play offense,” said JT Fitzgerald, Kingsway’s President and CEO. “Over the last handful of years, Kingsway has created a world-class SF platform backed by purpose built infrastructure, an outstanding Advisory Board, and a talented group of Operator CEO’s. The results so far have been highly encouraging, and provide confidence it’s the right time to accelerate investment into our public SF strategy.

Thanks to this private placement, Kingsway is doubling its target range for annual acquisitions via the Kingsway Search Xcelerator (“KSX”), from 2–3 per year to 3–5 per year. Recent acquisitions include B2B services companies such as Ravix Group, CSuite Financial Partners, and Image Solutions; healthcare services companies like Secure Nursing and Digital Diagnostics; software company Systems Product International; and Bud’s Plumbing, a service and repair plumbing business.

“Today marks an important inflection point for Kingsway,” concluded Mr. Fitzgerald. “We’ve laid the foundation, and we are now ready to accelerate growth.”

Legal: Cadwalader, Wickersham & Taft LLP