Clearwater Acquires CynergisTek for $17.7M to Tackle Healthcare Cybersecurity

With a focus on healthcare cybersecurity and compliance, CynergisTek entered into a definitive agreement to be acquired by Clearwater for $17.7 million.

CynergisTek provides cybersecurity, compliance, and IT services to help highly regulated industries tackle security and privacy issues. Clearwater Compliance is a healthcare-focused firm that helps its clients with cybersecurity, compliance, and risk management solutions.

“Today’s announcement is a testament to the strength of CynergisTek’s people-centric approach to cybersecurity, privacy and audit and our important role in serving healthcare and our many other clients,” Mac McMillan, president and CEO of CynergisTek, explained in the announcement.

“We have made tremendous strides in expanding our service offerings over the years. 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.”

CynergisTek stockholders will receive $1.25 per share in the all-cash transaction. Once the transaction is complete, CynergisTek will be a privately held subsidiary of Clearwater and will no longer be listed on the public market.

“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,” McMillan continued.

“This is an exciting new chapter for CynergisTek that would not have been possible without our employees’ hard work and commitment to our customers, partners, investors and each other.”

The transaction is expected to close in Q3 2022. CynergisTek has been a leading cybersecurity firm since 2004. Clearwater provides solutions to more than 400 healthcare organizations across the United States.

“CynergisTek is an industry leader in healthcare cybersecurity, privacy and audit, supporting a large enterprise customer base,” Steve Cagle, CEO of Clearwater, stated in the announcement.

“The combination of our companies will result in a comprehensive portfolio of solutions that add significant value for our customers and for the healthcare industry. We are incredibly excited to bring together two of the top healthcare focused cybersecurity companies and look forward to working hand in hand with colleagues at CynergisTek to support our customers and proactively address their growing cybersecurity and compliance needs.”