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MSSP CynergisTek Sells Managed Print Services Business

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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.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.