Kingsway Announces Acquisition of Ledgers, Inc. By Ravix Group
Rhea-AI Summary
Kingsway (NYSE:KFS) announced on January 7, 2026 that its subsidiary Ravix Group closed the acquisition of Ledgers, Inc. on January 5, 2026. Ledgers provides outsourced accounting to small businesses and nonprofits and produced an unaudited pro-forma adjusted EBITDA of $0.4 million for the 12 months ended September 30, 2025.
The deal expands Ravix's geographic footprint into the Midwest, further diversifies customer end-markets, and is funded with a mix of cash on hand, debt financing, and a seller note; Ravix supplied 100% of required equity capital, with no additional parent funding needed.
Positive
- Unaudited pro-forma adjusted EBITDA of $0.4M
- Geographic expansion into the Midwest
- Ravix provided 100% of equity with no additional parent funding
Negative
- Transaction includes debt financing and a seller note, increasing leverage
- Pro-forma EBITDA of $0.4M is modest and may have limited near-term earnings impact
News Market Reaction
On the day this news was published, KFS declined 0.48%, reflecting a mild negative market reaction. This price movement removed approximately $2M from the company's valuation, bringing the market cap to $379M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Sector peers showed mixed moves; only UXIN appeared in momentum scanners, up 5.88% without news, suggesting today’s focus is company-specific to KFS rather than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Earnings update | Positive | -0.2% | Strong Q3 revenue and KSX EBITDA growth but shares slipped slightly. |
| Oct 29 | Earnings preview | Neutral | -2.7% | Q3 results date and call details with standard communication info. |
| Oct 21 | Management update | Neutral | -0.4% | New Operator-in-Residence to pursue TIC acquisition opportunities. |
| Aug 18 | Service acquisition | Positive | +1.3% | Southside Plumbing acquisition adding revenue, EBITDA and recurring business. |
| Aug 07 | Earnings update | Neutral | -2.7% | Q2 revenue growth with net loss, debt reduction and multiple deals. |
Recent history shows small negative reactions around earnings and modest positive moves on acquisitions, indicating the market has tended to reward inorganic growth more than headline results.
Over the last six months, Kingsway reported growing revenues in Q2 and Q3 2025 but with continued net losses and active balance sheet management, including debt reduction and a private placement. The KSX platform has been expanded via multiple acquisitions such as Roundhouse Electric, Southside Plumbing, and other skilled-trades and services businesses. Today’s Ledgers deal fits this pattern of bolt-on acquisitions that enhance recurring revenue and diversify end-markets within the KSX strategy.
Market Pulse Summary
This announcement details Kingsway’s KSX platform completing its 13th acquisition, adding Ledgers, an outsourced accounting provider with about $0.4 million of unaudited pro-forma adjusted EBITDA for the twelve months ended September 30, 2025. The deal broadens Ravix’s Midwest presence and small business and nonprofit exposure, funded at the subsidiary level with cash, debt financing, and a seller note. Investors may track upcoming earnings commentary for quantified impacts on KSX run-rate EBITDA and recurring revenue mix.
Key Terms
ebitda financial
pro-forma financial
debt financing financial
seller note financial
AI-generated analysis. Not financial advice.
Kingsway Search Xcelerator's 13th Acquisition
Outsourced accounting services provider with strong recurring revenue and organic growth
Unaudited pro-forma annual adjusted EBITDA of
$0.4 million Ravix Group expands geographically into the Midwest while further diversifying customer end-markets
CHICAGO, IL / ACCESS Newswire / January 7, 2026 / Kingsway Financial Services Inc. (NYSE:KFS) ("Kingsway" or the "Company"), the only publicly-traded US company employing the Search Fund model to acquire and build great businesses, today announced that its wholly-owned subsidiary Ravix Group, Inc. ("Ravix"), has acquired the assets of Ledgers, Inc. ("Ledgers"), a provider of outsourced accounting services based in the state of Illinois.
Founded to serve small businesses and nonprofit organizations and associations, Ledgers delivers outsourced accounting solutions including bookkeeping, financial reporting, and ongoing financial support. Ledgers generated approximately
The acquisition expands Ravix's geographic footprint into the Midwest, further diversifies Ravix's customer end-markets, and is a strong cultural fit given Ledgers's client-first approach and long-term customer relationships. The transaction also accelerates Ravix's momentum in the small business and nonprofit verticals following the recent acquisition of The HR Team, Inc. ("The HR Team").
The transaction closed on January 5, 2026, and was funded with a combination of cash on hand, debt financing, and a seller note. Ravix provided
Management will provide additional details about the acquisition during the company's fourth quarter 2025 earnings call. Timi Okah, CEO of Ravix, sourced and led the transaction for Kingsway.
Management Commentary
"This acquisition aligns squarely with our strategy of acquiring profitable, service-based businesses with strong recurring revenue and organic growth," said JT Fitzgerald, President and CEO of Kingsway. "It's also an excellent example of the KSX flywheel in action - where our operating companies fund strategic M&A out of cash flow at the operating level, without relying on incremental capital from the Kingsway parent company. We are excited to support Ledgers's growth ambitions, and thrilled to welcome Kelly and her team to Kingsway."
"Ledgers has built a wonderful business with robust organic growth and high customer retention by always putting its clients first," said Timi Okah, CEO of Ravix. "We believe that by leveraging the Ravix operating platform and playbook, and by working together with The HR Team which offers complementary services to similar customer end-markets, Ledgers is well-positioned to drive further growth while maintaining the client-centric model that has underpinned its success."
"Joining Kingsway provides us with a strong partner and a long-term home," said Kelly Ettling, Founder of Ledgers, Inc. "Kingsway's decentralized approach allows us to continue serving our clients with the same focus and culture, while benefiting from additional resources and opportunities for growth."
About Ledgers, Inc.
Ledgers, Inc. ("Ledgers") is a leading provider of outsourced accounting services that helps small businesses, nonprofit organizations, and professional services firms streamline their financial operations and make smarter financial decisions. With a dedicated team of experienced accounting professionals, Ledgers delivers tailored financial reporting, bookkeeping, payroll processing, and compliance support designed to meet the unique needs of each client. The company's solution-oriented approach emphasizes accuracy, transparency, and practical financial insight, enabling clients to focus on mission-critical priorities with confidence.
About the Company
Kingsway Financial Services Inc. ("Kingsway") (NYSE: KFS) is the only publicly-traded US company employing the Search Fund model to acquire and build great businesses.
Kingsway owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, profitable, and that have recurring revenues. Kingsway seeks to compound long-term shareholder value on a per share basis via its decentralized management model, its talented team of operators, and its tax-advantaged corporate structure.
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 the Company's 2024 Annual Report on Form 10-K and subsequent Form 10-Qs and Form 8-Ks filed with the Securities and Exchange Commission. Except as expressly required by applicable securities law, the Company 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 its Annual Reports 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 the Company's website at www.kingsway-financial.com.
For Investor Inquiries:
Hayden IR
James Carbonara
(646) 755-7412
james@haydenir.com
For Company Inquiries:
Kingsway Financial Services Inc.
Kent Hansen, CFO
(312) 766-2163
khansen@kingsway-financial.com
SOURCE: Kingsway Financial Services, Inc.
View the original press release on ACCESS Newswire
FAQ
What did Kingsway (KFS) announce on January 7, 2026 about Ledgers?
How was the Ledgers acquisition by Ravix funded for Kingsway (KFS)?
What strategic benefits does the Ledgers acquisition bring to Ravix and KFS?
When will Kingsway provide more details about the Ledgers acquisition?
Who led the Ledgers transaction for Ravix and what role will Ledgers play post-acquisition?
