Kingsway Financial Services Inc. (NYSE:KFS) signed an agreement to acquire 95% stake in National Institute of Clinical Research, Inc. for $7.9 million on October 23, 2023. Under the terms of the definitive purchase agreement, Kingsway will acquire 95% of the shares of NICR for $7.9 million, representing a 6.9 multiple of trailing twelve month (June 30, 2023) adjusted EBITDA. NICR generated revenues of $6.6 million and adjusted EBITDA of $1.2 million for the trailing twelve months ended June 30, 2023.

The remaining 5% will remain with the seller. Dr. Davide Zanchi, the Operator-in Residence will transition to Chief Executive Officer following the close of the transaction. NICR will operate under the Kingsway Search Xcelerator segment.

The transaction, which is subject to certain closing conditions, is expected to close in the first quarter of 2024. Kingsway expects to fund the purchase price with a mix of cash on hand and third-party financing. Holland & Knight LLP served as legal counsel to Kingsway and Frost Brown Todd LLP served as legal counsel to the seller in connection with the transaction.