CynergisTek, an Austin-based company that helps hospitals with cybersecurity, privacy, compliance and IT audits, announced earlier this week that it will be acquired for $17.7 million by Clearwater Compliance, a healthcare-focused cybersecurity, compliance and risk management solutions firm.
CynergisTek’s board of directors unanimously approved the merger agreement, and soon it will be voted on by stockholders. When the transaction closes, CynergisTek will become a privately-held subsidiary of Clearwater, and CynergisTek shares will no longer be listed on any public market.
CynergisTek CEO Mac McMillan said in a statement that the company has worked hard to expand its service offerings over the years, and this merger is a testament to the company’s value.
“We believe that merging Clearwater and CynergisTek as a private company will allow the combined entity to be more agile with greater flexibility to continue investing in innovation with the opportunity to scale as a Managed Service Provider (MSP) expanding and enhancing its service portfolio,” McMillan said. “Many industries, not just healthcare, are turning to MSPs for the support and expertise they need to meet today’s cyber threats. Building on our combined leadership position, we’ll be able to create a more valuable platform for the industry and our clients.”
When the merger is finalized, CynergisTek stockholders will receive $1.25 per share in cash, which is about a 112 percent increase over the company’s closing share price on May 20.
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