CynergisTek, a well-known healthcare privacy and information security consultancy, now is part of document management/IT security firm Auxilio following an acquisition.
Auxilio will pay as much as $26.8 million in cash, stock and seller debt with additional payments of as much as $7.5 million over five years if CynergisTek meets certain financial performance metrics, for a possible total cost of $34.3 million. Auxilio already owns data security vulnerability testing and assessment services firm Redspin and risk management vendor Delphiis, which will be merged into CynergisTek.
CynergisTek leaders Mac McMillan and Michael Mathews will join the board of the combined entity and have significant ownership stakes. CynergisTek will operate independently, but opportunities exist to offer combined services over time, said Auxilio CEO Joe Flynn in a statement. “We have long stated our desire to expand our reach in healthcare IT security, and this acquisition puts us in an immediate leadership position in the category,” Flynn added. read more here