Cynergis Tek Sells MPS Business to Vereco for $30 Million
Cynergis Tek, Inc. reported that it’s sold the assets used in its managed print services (MPS) business division for $30 million to Vereco, LLC, an independent provider of healthcare document services, including printing solutions for hospitals.
CynergisTek management believes that this transaction will enable CynergisTek to prioritize its core cybersecurity and privacy services.
Under the asset sale agreement, all operations and assets of CynergisTek’s MPS business division were transferred to Vereco. CynergisTek will continue to operate its business division of cybersecurity, privacy, and compliance management consulting. Subject to the terms and conditions of the agreement, the total consideration to CynergisTek is $30 million, of which $1.5 million is subject to future sales activity of the MPS business.
CynergisTek says its use of the proceeds will include paying down a majority of its existing debt, which it says will allow it more flexibility to grow its cybersecurity and privacy business.
CynergisTek and Vereco also entered into a strategic relationship that will allow CynergisTek to provide cybersecurity assessments and managed services to Vereco’s current and future clients, and also allow Vereco to provide managed print services to current and future clients of CynergisTek.
Mac McMillan, CEO of CynergisTek, commented: “We believe this sale will allow CynergisTek to more effectively drive towards our strategic focus of growth in our cybersecurity and privacy business, improve our financial condition through the reduction of debt and increase our agility as a company overall. At the same time, we are entrusting our managed print customers to a high-quality leading healthcare document services business and will be working to ensure a quick and smooth transition for all customers.”
“Our acquisition of CynergisTek’s MPS business is a win for all,” commented Vereco CEO Joe Flynn. “CynergisTek is able to focus on its award-winning cybersecurity business, and we’re able to extend the reach and value of our distinctive approach to healthcare document services. We’re excited by the prospect of bringing the benefits of our enhanced organization to our current and future clients.”