Kingsway Financial Services and its subsidiary 1347 Capital has finalised the purchase of certain tangible and intangible assets and liabilities of Florida-based Intercontinental Warranty Services (IWS).
IWS is a provider of after-market vehicle service agreements, mechanical breakdown insurance, and guaranteed asset protection to their members in conjunction with their auto loans to credit unions throughout the country.
The transaction, which marks the completion of a definitive agreement to acquire a specialty insurance business, will involve cash, future contingent payments and common equity in a newly formed entity.
Kingsway's president and chief executive officer Larry Swets, Jr. said, "This acquisition represents the type of opportunity we expect to pursue more frequently as we continue to focus on rebuilding shareholder value at Kingsway."
Sandler O'Neill + Partners and Updike, Kelly & Spellacy served as exclusive financial advisor and legal counsel to Kingsway on the deal.
Functioning as a merchant bank, Kingsway is a holding company that owns or controls stakes in several insurance industry assets.