(AMEX: CTEK) shares are soaring this morning on news that the company is being acquired. The shares are up over 100% on increasing trading volume. More than 3,000 trades and the stock is currently trading at $1.19 a share.
Under the terms of the merger agreement, CynergisTek stockholders will receive $1.25 per share in cash, representing a premium of approximately 112% over CynergisTeks closing share price on May 20, 2022, the last full trading day prior to the transaction announcement, and a premium of approximately 48% over CynergisTeks 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.
Todays announcement is a testament to the strength of CynergisTeks people-centric approach to cybersecurity, privacy and audit and our important role in serving healthcare and our many other clients, said Mac McMillan, President and CEO of CynergisTek Inc. We have made tremendous strides in expanding our service offerings over the years. We believe that merging Clearwater and CynergisTek as a private company, will allow the combined entity to be more agile with greater flexibility to continue investing in innovation with the opportunity to scale as a Managed Service Provider (MSP) expanding and enhancing its service portfolio. Many industries, not just Healthcare, are turning to MSPs for the support and expertise they need to meet todays cyber threats. Building on our combined leadership position well be able to create a more valuable platform for the industry and our clients. This is an exciting new chapter for CynergisTek that would not have been possible without our employees hard work and commitment to our customers, partners, investors and each other.
CynergisTek is an industry leader in healthcare cybersecurity, privacy and audit, supporting a large enterprise customer base, said Steve Cagle, Chief Executive Officer of Clearwater. The combination of our companies will result in a comprehensive portfolio of solutions that add significant value for our customers and for the healthcare industry. We are incredibly excited to bring together two of the top healthcare focused cybersecurity companies and look forward to working hand in hand with colleagues at CynergisTek to support our customers and proactively address their growing cybersecurity and compliance needs.