Clearwater Compliance LLC’s Acquisition of CynergisTek, Inc.

Kirton McConkie PC acted as CynergisTek’s legal counsel, while ArentFox Schiff LLP assisted Clearwater.

CynergisTek, Inc. (NYSE American: CTEK), a leading cybersecurity, privacy, compliance, and IT audit firm helping organizations in highly regulated industries navigate emerging security and privacy issues, entered into a definitive agreement to be acquired by Clearwater Compliance LLC (collectively with its affiliates, “Clearwater”), a healthcare focused cybersecurity, compliance, and risk management solutions firm, in an all cash transaction that values CynergisTek at approximately $17.7 million.

Under the terms of the merger agreement, CynergisTek stockholders will receive $1.25 per share in cash, representing a premium of approximately 112% over CynergisTek’s closing share price on May 20, 2022, the last full trading day prior to the transaction announcement, and a premium of approximately 48% over CynergisTek’s one-month volume-weighted average closing price through May 20, 2022. Upon completion of the transaction, CynergisTek will become a privately held subsidiary of Clearwater, and CynergisTek shares will no longer be listed on any public market. CynergisTek and Clearwater will partner together to further accelerate their shared missions of delivering best in class health cybersecurity, privacy and audit services.

Clearwater is a portfolio company of funds affiliated with Altaris Capital Partners, LLC, an investment firm focused exclusively on the healthcare industry.

CynergisTek is a top-ranked cybersecurity consulting firm helping organizations in highly-regulated industries, including those in healthcare, government, and finance navigate emerging security and privacy issues. 

The ArentFox Schiff team included Steve Isaacs (Picture), Sara Rosenberg, Cody C. Boender, Olga Bogush, Lauralyn G. Bengel, Chris L. Bollinger, Brian A. Friederich, David S. Sattelberger, Hillary M. Stemple and Jason L. Zgliniec. 

Involved fees earner: Lauralyn Bengel – ArentFox Schiff; Cody Boender – ArentFox Schiff; Olga Bogush – ArentFox Schiff; Chris Bollinger – ArentFox Schiff; Brian Friederich – ArentFox Schiff; Steve Isaacs – ArentFox Schiff; Sara Rosenberg – ArentFox Schiff; David Sattelberger – ArentFox Schiff; Hillary Stemple – ArentFox Schiff; Jason Zgliniec – ArentFox Schiff;

Law Firms: ArentFox Schiff;

Clients: Clearwater Compliance LLC ;

Sonia Carcano

Author: Sonia Carcano