Management to Host Conference Call Today at
5 p.m. ET
- Fourth acquisition under the Kingsway Search Xcelerator
Program, first in 2023
- High margin, capital light, recurring revenue business
- VMS formation creates a platform for future vertical market
software acquisitions
CHICAGO, Sept. 11,
2023 /PRNewswire/ - (NYSE: KFS) Kingsway Financial
Services Inc. ("Kingsway") today announced the formation of
Vertical Market Solutions, LLC ("VMS") and the acquisition of the
privately-held vertical market software company Systems Products
International, Inc. ("SPI"). This acquisition is the fourth
acquisition completed under the Kingsway Search Xcelerator Program.
Operator-in-Residence ("OIR") Drew Richard will be transitioning
into the day-to-day operating role as CEO of SPI following the
transaction.
SPI, based in Miami, Florida
(www.spisoftware.com), is a preferred partner in the development of
software products, created exclusively to serve the management
needs of all types of shared-ownership properties. The SPI platform
includes a comprehensive set of modules with software solutions
that cover the entire vacation ownership enterprise: sales,
property management, loan servicing, receivables management,
integrations, and mobile applications.
"This is Kingsway's fourth acquisition under the Kingsway Search
Xcelerator Program and our first in the vertical market software
space," said Kingsway President and
CEO, J.T. Fitzgerald. "The
transaction reflects the progress we are making with several
potential M&A transactions as deal flow has increased
significantly since the start of 2023. SPI fits our criteria of
recurring revenue, strong margins, and low capital demands, in a
growing industry, and we expect it will be immediately accretive.
While smaller than our typical acquisition, we are excited
about SPI and its history and prospects as our first acquisition
under VMS." "Founded in 1978, SPI is a pioneer in its field
and has created world-class software products for the time-share
and vacation rental industries," said Drew
Richard, incoming SPI CEO. "I am honored to join this
well-established team and continue meeting the needs of current and
future customers."
Even after taking into consideration the anticipated effects of
purchase accounting, Kingsway expects the acquisition to be
immediately accretive and provide uplift to its recurring revenue
base. The closing purchase price was paid
in cash.
Holland & Knight served as
legal counsel to Kingsway and Marko & Magolnick, P.A. served as
legal counsel to the sellers.
Management will host a Conference today at 5 p.m. ET to further discuss the transaction.
Kingsway also announced today that Miles
Mamon has joined its innovative Kingsway Search Xclerator
("KSX") segment as the newest OIR. "We are excited to welcome
Miles to the KSX team," said John T.
Fitzgerald. "As deal flow continues to pick-up and our
portfolio of KSX companies continues to expand, having Miles on
board to help find our next great company is a great addition to
the deep bench of OIRs already in place."
Prior to joining Kingsway, Mr. Mamon was a Vice President at
Morgan Stanley where he was responsible for acquisitions and asset
management within the Merchant Banking and Real Estate Investing
group. Mr. Mamon began his career as an air and missile defense
officer in the United States Army
where he served in a patriot missile unit supporting a NATO
operation to protect the Turkish southern border region during the
Syrian Civil War. Mr. Mamon holds a JD from the Northwestern
Pritzker School of Law, an MBA in Finance from the Northwestern
Kellogg School of Management and a BA in Economics and Classics
from Northwestern University.
Conference Call
Information
Date: Monday, September 11,
2023
Time: 5:00 PM Eastern Time
Toll Free : 888-506-0062; Code:
489653
International: 973-528-0011; Code: 489653
Live Webcast Link:
https://www.webcaster4.com/Webcast/Page/2928/49013
Conference Call Replay Information
Toll Free : 877-481-4010
International: 919-882-2331
Replay Passcode: 49013
Replay Webcast Link:
https://www.webcaster4.com/Webcast/Page/2928/49013
About Kingsway
Kingsway is a holding company that owns or controls subsidiaries
primarily in the extended warranty and business services
industries. The common shares of Kingsway are listed on the New
York Stock Exchange under the trading symbol "KFS."
The Company serves the extended warranty industry through its
operating subsidiaries IWS (iwsgroup.com), Penn Warranty
(pennwarranty.com), Preferred Warranties (preferredwarranties.com)
and Trinity Warranty Solutions (trinitywarranty.com).
The Company serves the business services industry through its
operating subsidiaries CSuite (csuitefinancialpartners.com), Ravix
(ravixgroup.com) and Secure Nursing Service
(securenursing.com).
Forward-Looking Statements
This press release may include "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 that are not
historical facts, and involve risks and uncertainties that could
cause actual results to differ materially from those expected and
projected. Words such as "expects," "believes," "anticipates,"
"intends," "estimates," "seeks" and variations and similar words
and expressions are intended to identify such forward-looking
statements; however, the absence of any such words does not mean
that a statement is a not a forward- looking statement. Such
forward-looking statements relate to future events or future
performance but reflect Kingsway management's current beliefs,
based on information currently available. A number of factors could
cause actual events, performance or results to differ materially
from the events, performance and results discussed in the
forward-looking statements. For information identifying important
factors that could cause actual results to differ materially from
those anticipated in the forward-looking statements, please refer
to the section entitled "Risk Factors" in Kingsway's Annual Report
on Form 10-K for the fiscal year ended December 31, 2022 (the "2021 Annual Report").
Except as expressly required by applicable securities law, Kingsway
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Additional Information
Additional information about Kingsway, including
a copy of the 2021 Annual Report and filings on Forms 10-Q and 8-K,
can be accessed on the EDGAR section of the U.S. Securities and
Exchange Commission's website at www.sec.gov, on the Canadian
Securities Administrators' website at www.sedar.com, or through
Kingsway's website at www.kingsway-financial.com.
For Media Inquiries:
Hayden IR
James Carbonara
(646) 755-7412
james@haydenir.com
For Business Development Inquiries:
Kingsway Financial
Services Inc.
Charles Joyce
(312) 766-2155
cjoyce@kingsway-financial.com
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SOURCE Kingsway Financial Services Inc.