Kingsway Search Xcelerator's 11^th Acquisition

• Asset-light outsourced human resources services business with recurring revenues

• Unaudited pro-forma annual adjusted EBITDA of $0.2 million

CHICAGO, ILLINOIS / ACCESS Newswire / August 6, 2025 / (NYSE: KFS) Kingsway Financial Services Inc. ("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 completed the strategic acquisition of The HR Team, Inc. ("The HR Team"), a specialized firm of human resources professionals based in the state of Maryland.

The transaction enhances Ravix's ability to deliver comprehensive human resources ("HR") services as part of its Office of the CFO platform, and expands Ravix's capabilities in HR compliance, organizational development, and outsourced HR support services. The combination expands and diversifies Ravix's client base, creates meaningful cross-selling opportunities, and provides a strong foundation for further expansion in outsourced HR services.

The transaction closed on August 1, 2025, and was funded with cash on hand and a seller note.

Management will provide additional details about the acquisition during the company's second quarter 2025 earnings call. Timi Okah, CEO of Ravix, sourced and led the transaction for Kingsway.

Management Commentary

"I am delighted to welcome The HR Team to Ravix and to Kingsway," said JT Fitzgerald, President and CEO of Kingsway. "This transaction highlights our broader strategy of backing our talented Operator CEO's as they seek to grow their businesses, even after the initial acquisition. Timi is doing an exceptional job not only operating Ravix but also identifying and executing on new opportunities for growth. At Kingsway, our focus remains empowering our Operator CEO's as they scale their businesses and pursue long-term value creation."

"The HR Team is a strong strategic and cultural fit for Ravix," said Timi Okah, CEO of Ravix. "Strategically, the acquisition expands our capabilities in HR services, strengthens our presence on the East Coast, and accelerates our growth in the nonprofit, membership organization, and government services verticals. Culturally, The HR Team's commitment to outstanding customer service mirrors our client-centric model at Ravix. Bringing the two organizations together represents a meaningful step forward in our strategy to build a more diversified, high-retention business."

"Joining forces with Ravix is a natural evolution for The HR Team," said Eileen Levitt, Founder and President of The HR Team. "We share a common commitment to exceptional client service and practical, people-centered solutions. As I step into an Executive Advisor role, I look forward to supporting the integration and to continuing to help our team and clients succeed under the Ravix platform."

About The HR Team, Inc.

Founded in 1996, The HR Team is a respected HR outsourcing firm serving small and mid-sized organizations across a diverse range of sectors including technology, construction, financial services, and nonprofits. From the outset, The HR Team has distinguished itself by delivering personalized, strategic HR support including acting as a cost-effective alternative to an in-house HR department. With a reputation built on tailored solutions, The HR Team has consistently prioritized culture fit, client trust, and strategic impact in its customized service model.

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.