CynergisTek Announces Expansion Renewal of $1.4 Million 3-Year Managed Services Agreement

Rhea-AI Summary

CynergisTek (NYSE AMERICAN: CTEK) announced a renewal agreement for managed services worth $600,000 and an additional $800,000 for new services with a long-term client. This agreement will enhance coverage for affiliate hospitals and ongoing security risk assessments. The healthcare sector faces increasing cybersecurity threats, including a 260% rise in ransomware attacks. CynergisTek aims to support organizations in improving their cybersecurity practices, particularly as healthcare consolidation increases risks.

Positive

• Secured a $600,000 managed services renewal agreement.
• Additional $800,000 in services for new affiliate hospitals.
• Focus on enhanced cybersecurity amidst increasing risks.

Negative

• None.

CynergisTek, (NYSE AMERICAN: CTEK), a leading cybersecurity firm helping organizations in highly regulated industries, today announced a $600,000 managed services renewal agreement with a long-term client along with over $800,000 in new services to add coverage for its new affiliate hospitals to conduct on-going security risk assessments and related services.

CynergisTek’s State of Healthcare Security 2020 reports that when it comes to cybersecurity it’s all about rinse, repeat, and repeat again. Organizations that conduct regular risk assessments and prioritize remediation show significant improvement in their NIST CSF conformance and score. Last year the healthcare industry experienced a 260% increase in ransomware attacks and when Covid-19 quickly changed the traditional business model to remote work and telehealth it gained the attention from board-level executives to focus on building stronger cybersecurity and privacy practices. CynergisTek’s managed services are designed to reduce risk over time by supporting the organization to continually remediate, train, evaluate the strategy, and validate the effectiveness of their efforts.

“Healthcare consolidation has led to an increased attack surface and new risks as organizations become larger and more complex. We are proud that our client is committed to solidifying their security and privacy posture across the entire enterprise including their new affiliate hospitals and for choosing CynergisTek as their critical partner on this journey,” said Caleb Barlow, CEO and president at CynergisTek.

About CynergisTek, Inc.

CynergisTek is a top-ranked cybersecurity firm dedicated to serving the information assurance needs of the healthcare industry. CynergisTek offers specialized services and solutions to help organizations achieve privacy, security, and compliance goals. Since 2004, the company has served as a partner to hundreds of healthcare organizations and is dedicated to supporting and educating the industry by contributing to relevant industry associations. In 2020, the company was awarded Black Book’s Top Healthcare Cybersecurity Consultants for two consecutive years.

Forward-Looking Statements

This release contains certain forward-looking statements relating to the business of CynergisTek that can be identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “may” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product/service development, long and uncertain sales cycles, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, future capital requirements, competition from other providers, the ability of our vendors to continue supplying the company with equipment, parts, supplies and services at comparable terms and prices and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. CynergisTek is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210427005947/en/

FAQ

What are CynergisTek's recent service agreements involving CTEK?

CynergisTek announced a $600,000 renewal agreement and $800,000 in new services for affiliate hospitals.

How much did CynergisTek secure in new service agreements?

CynergisTek secured $800,000 in new service agreements alongside a $600,000 renewal.

What challenges is the healthcare sector facing according to CynergisTek?

The healthcare sector is facing a 260% increase in ransomware attacks and increased risks due to consolidation.

How does CynergisTek plan to support its clients?

CynergisTek plans to reduce cybersecurity risks through ongoing security risk assessments and managed services.