Kingsway Acquires Roundhouse Electric for $22.4 Million

Kingsway Financial Services ( (KFS) ) has provided an update.

Kingsway Financial Services Inc. has acquired Roundhouse Electric & Equipment Co., Inc. for $22.4 million. Roundhouse, based in Odessa, Texas, specializes in electric motor maintenance, repair, testing, and sales for midstream natural gas pipeline operators and utilities in the Permian Basin. The acquisition is expected to enhance Kingsway’s operations by leveraging Roundhouse’s strong customer retention and growth potential, driven by increased natural gas pipeline flows and a shift to more efficient electrical motors. The transaction was funded with cash and a credit facility, and the selling shareholders will retain an economic interest, indicating confidence in the company’s future.

Spark’s Take on KFS Stock

According to Spark, TipRanks’ AI Analyst, KFS is a Neutral.

Kingsway Financial Services’ overall score is primarily impacted by its financial struggles, including high leverage and negative cash flows. The strong technical indicators provide a positive outlook, but the overbought status is a concern. The mixed outcomes from the earnings call, with segment growth and acquisition benefits contrasted by profitability challenges, also influence the score.

To see Spark’s full report on KFS stock, click here.

More about Kingsway Financial Services

Kingsway Financial Services Inc. is the only publicly-traded US company employing the Search Fund model to acquire and build businesses. It owns and operates a collection of high-quality B2B and B2C services companies that are asset-light, growing, profitable, and have recurring revenues.

Average Trading Volume: 65,364

Technical Sentiment Signal: Buy

Current Market Cap: $406.5M

For detailed information about KFS stock, go to TipRanks’ Stock Analysis page.