Kingsway Acquires Vehicle Protection Service Business [Professional Services Close – Up]

Kingsway Financial Services Inc. and its subsidiary, 1347 Capital, announced that the Company has finalized the purchase of certain tangible and intangible assets and liabilities of Intercontinental Warranty Services, Inc. ("IWS").

According to a release, IWS, based in Boca Raton, Florida, is a provider of after-market vehicle protection services to credit unions throughout the country. IWS is known in the credit union community for providing vehicle service agreements, mechanical breakdown insurance, and guaranteed asset protection to their members in conjunction with their auto loans. The tangible and intangible assets and liabilities of IWS are being acquired in a highly structured transaction for total consideration consisting of cash, future contingent payments and common equity in a newly formed entity. Kingsway expects the business to be immediately accretive to operating income and cash flow. This purchase marks the consummation of the previously announced execution of a definitive agreement, dated February 21, to acquire a specialty insurance business.

"This acquisition represents the type of opportunity we expect to pursue more frequently as we continue to focus on rebuilding shareholder value at Kingsway. We believe IWS has a unique and compelling value proposition that enhances credit unions' vehicle loan programs, and we are excited that IWS is joining the Kingsway family," said Larry G. Swets, Jr., Kingsway's President and Chief Executive Officer.

Sandler O'Neill + Partners, L.P. acted as exclusive financial advisor to Kingsway, and Updike, Kelly & Spellacy, P.C. acted as legal counsel to Kingsway.

More information:

www.kingsway-financial.com

((Comments on this story may be sent to [email protected]))