Kingsway’s Ravix Group buys Ledgers to boost U.S. Midwest footprint

ILLINOIS, UNITED STATES — Kingsway Financial Services Inc. has announced that its subsidiary, Ravix Group, has acquired Illinois-based outsourced accounting firm Ledgers, Inc. 

The acquisition strategically expands Ravix’s geographic and market reach by integrating Ledgers’ established client base and its financial profile, which includes strong recurring revenue and an unaudited pro forma adjusted EBITDA of $0.4 million.

“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 Chief Executive Officer (CEO) of Kingsway.

Ledgers’ outsourced accounting meets Kingsway’s fund model

Ledgers Inc. provides specialized outsourced accounting, financial reporting, and compliance services, enabling small businesses and nonprofits to streamline operations with tailored support. 

The firm’s solution-oriented model emphasizes accuracy and strategic insight, allowing clients to refocus on core priorities while experienced professionals manage their finances. 

On the other hand, Kingsway Financial Services Inc. is the sole publicly traded United States company that uses the Search Fund model to acquire and build businesses systematically. 

It focuses on putting together a portfolio of asset-light, profitable companies with recurring revenue. The goal is to increase shareholder value through decentralized management and a tax-advantaged structure.

A key component of this strategy is the firm’s specialized subsidiary, Ravix Group, a wholly owned professional services arm. Ravix specializes in providing fractional and outsourced finance, accounting, and human resources services primarily to startups, venture-backed companies, nonprofits, and mid-market businesses. 

Kingsway, Ravix expand Midwest B2B footprint with Ledgers deal

The acquisition of Ledgers, Inc. by Ravix Group represents a deliberate strategic expansion for Kingsway, executed on multiple fronts. Geographically, the move establishes Ravix’s presence in the Midwest, a new region for the group. 

Furthermore, it diversifies the customer end-markets Ravix serves, adding depth to its portfolio of business-to-business (B2B) service companies. This geographic and market diversification is designed to build a more resilient and growing collection of businesses under the Kingsway umbrella.

Critically, the transaction is framed as a strong cultural and operational fit. Kingsway’s management highlights Ledgers’s client-first approach and long-term customer relationships as complementary to their decentralized model. 

The acquisition also accelerates momentum in specific verticals—small business and nonprofit organizations—following Ravix’s recent acquisition of The HR Team. 

As Timi Okah, CEO of Ravix, notes, “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.”

This suggests a strategic intent to build clusters of complementary service offerings that can cross-sell and leverage shared operational playbooks across similar end markets.

Deal structure showcases Kingsway’s search fund, KSX flywheel

This acquisition underscores the practical execution of Kingsway’s unique corporate strategy as a publicly traded Search Fund. The deal was structured and funded entirely at the operating company level.

Ravix provides 100% of the equity capital through cash on hand, debt financing, and a seller note, requiring no additional capital from the Kingsway parent.

This funding mechanism is highlighted as a key example of what Fitzgerald calls the “KSX flywheel,” in which operating companies fund strategic mergers and acquisitions with their own cash flow. This self-sustaining model is central to Kingsway’s aim of compounding long-term shareholder value per share. 

“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,” said Kelly Ettling, Founder of Ledgers, Inc.