CynergisTek, a managed security services provider (MSSP), has sold its managed print services (MPS) business unit to Vereco for $30 million, ChannelE2E reports.
CynergisTek will now focus entirely on cybersecurity, privacy and compliance services for the health care vertical. It's not a surprising move. Although MPS can be a solid recurring revenue business, the cybersecurity sector is generally growing more rapidly.
CynergisTek: Managed Security Revenues
CynergisTek appears to be gaining cyber momentum. Among the evidence to note, the company:
- Signed roughly 15 managed security contracts in Q3 2018 while growing security bookings by more than 35 percent year-to-date when compared to 2017, CynergisTek said in November 2018.
- In Q3 2018 doubled the number of new security clients signed bringing the total to 40 year to date.
- In December 2018 inked a “preferred” partnership with Protenus, a healthcare compliance analytics platform that protects patient privacy.
CynergisTek's overall Q3 2018 revenues were $19.2 million, up 7 percent from $17.9 million for the same period of 2017. The company will provide more details about the business unit sale during its Q4 2018 earnings call on March 28, 2019.