On August 6, 2026, Kingsway Corporation (NYSE: KWY) disclosed the acquisition of Romeo Computer Company, Inc. (RCC) by its subsidiary, Image Solutions, LLC. The acquisition, valued at $2.4 million, fundamentally aims to enhance Image Solutions' geographic and service offerings, particularly within the managed IT and cybersecurity sectors.
RCC, based in Michigan, specializes in providing managed IT and cybersecurity services tailored for small and mid-sized businesses. Their offerings include IT support, disaster recovery, cloud solutions, specialty solutions, and compliance services. The company prides itself on a service-first approach, fostering long-term relationships with customers and maintaining robust recurring revenue streams.
This transaction enables Image Solutions to deepen its presence in the upper Midwest, capitalizing on RCC's established market foothold. According to unaudited financial reports, RCC reported approximately $2.5 million in annual revenue and an estimated $0.5 million in adjusted EBITDA for the twelve months ending April 30, 2026. This performance indicates RCC's strong position in a competitive market.
The purchase was entirely financed by Image Solutions through its existing cash reserves and debt financing, without necessitating additional capital input from Kingsway. The operational cash flow strategy reflects Kingsway's model of funding mergers and acquisitions via the performance of its operating subsidiaries, emphasizing financial independence.
JT Fitzgerald, President and CEO of Kingsway, stated that this acquisition aligns with their strategic goal of procuring profitable, service-oriented businesses. Meanwhile, Davide Zanchi, CEO of Image Solutions, highlighted the strengths of RCC’s customer-oriented approach and projected confidence in leveraging Image Solutions' resources to drive further growth.
With RCC’s integration into Kingsway's portfolio, both management teams expressed optimism about expanding RCC's service offerings and capabilities in managed services and cybersecurity. This acquisition exemplifies Kingsway's overarching strategy to enhance shareholder value through sustainable, service-based businesses.
The acquisition of RCC by Kingsway's subsidiary, Image Solutions, is significant as it expands Image Solutions' geographic presence into Michigan and enhances its managed IT and cybersecurity capabilities. RCC, which focuses on serving small and mid-sized businesses, aligns well with Image Solutions’ service-first approach.
Prior to the acquisition, RCC generated approximately $2.5 million in unaudited pro forma revenue and around $0.5 million in unaudited pro forma adjusted EBITDA for the twelve months ended April 30, 2026. This indicates RCC's position as a viable enterprise with a history of generating revenue.
The transaction was funded entirely by Image Solutions using cash on hand and debt financing, with Image Solutions providing 100% of the equity capital required. No additional capital was required from Kingsway.
The acquisition is expected to deepen Image Solutions' presence in the managed IT and cybersecurity market, leveraging RCC’s high customer retention rates and service model to foster further growth. It is seen as aligning with Kingsway's strategy of acquiring service-based businesses that generate recurring revenues.
The purchase price for the acquisition of RCC was reported to be $2.4 million, as stated in the announcement.
The long-term outlook for RCC under Kingsway's ownership includes potential growth opportunities, especially in enhancing managed services and cybersecurity capabilities, though no specific forecasts are provided in the announcement.
Davide Zanchi, CEO of Image Solutions, sourced and led the acquisition transaction for Kingsway.
The acquisition of RCC was completed on August 1, 2026.