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Auxilio Business Operations to Assume CynergisTek Name

Managed Document Solutions and Cybersecurity Segments to Operate Under the Common CynergisTek Brand

Mission Viejo, CA, August 29, 2017 — Auxilio Inc. (NYSE MKT: AUXO), a leading provider in healthcare document services and cybersecurity solutions, today announced that it has officially assumed the CynergisTek name and the NYSE MKT ticker symbol will become “CTEK”, effective September 8, 2017.

CynergisTek was acquired by Auxilio in January of 2017 and has a proven track record of delivering unmatched healthcare expertise and value to its growing client base which includes hundreds of the largest and most prestigious health systems and hospitals in the country.

Joe Flynn, CEO of Auxilio commented, “Operating under a common name was a logical next step as we see continued crossover between managed document solutions and cybersecurity demands with our healthcare customers.  This move will allow us to fully leverage our customer relationships and build upon the exceptional brand that CynergisTek has created over the years.”

Mac McMillan, President and Chief Strategy Officer added, “The integration of print and digital security is critical to building and maintaining a secure infrastructure today.  With the marriage of these components under one brand, we are unified in our mission to offer healthcare organizations the most comprehensive information management solutions to effectively mitigate risk, optimize productivity and drive savings.”

About Auxilio, Inc.

Auxilio (www.auxilioinc.com) is a leading provider bundling best of breed IT security and workflow solutions into its managed document services program designed exclusively for the healthcare industry. Since 2004, the company has saved more than $80 million for its clients by providing a vendor neutral program that enhances security of printed, stored data and digital documents while driving out costs and inefficiencies within the patient information logistical chain. The company’s document management best practices and intelligent workflow automation suite transforms printed documents to digital workflows, reducing waste and improving end-user satisfaction.

About CynergisTek

CynergisTek, an Auxilio company, (www.cynergistek.com) is a top-ranked cybersecurity, privacy and compliance consulting firm. The company offers solutions to help organizations measure privacy, security and compliance programs against regulatory requirements and assists in developing risk management best practices. Since 2004 the company has served as a partner to hundreds in the healthcare industry and is dedicated to supporting and educating the industry by contributing to relevant industry associations. The company has been named in numerous research reports as one of the top firms that provider organizations turn to for privacy and security, and won the 2017 Best in KLAS award for Cyber Security Advisory Services.

 

August 29, 2017 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

Auxilio has Acquired Healthcare IT Security Solutions Leader, CynergisTek for up to $34.3 Million

Deal Will Expand CynergisTek Capabilities with Addition of New Services, Tools and Personnel from Redspin, an Auxilio Company

Mission Viejo, CA, January 17, 2017Auxilio, Inc. (OTCQB: AUXOD), a leading provider of complete document workflow solutions and IT security services for the healthcare industry, announced today that it acquired Austin, TX based CynergisTek, an industry leader in health information privacy, compliance and cybersecurity consulting, for initial consideration of approximately $26.8 million in combined cash, stock, and seller debt.  Additional “earn outs” may be paid of up to $7.5 million over the next five years based on certain financial criteria being met.  The acquisition will enable the Company to meet growing demand from healthcare customers for comprehensive IT security solutions that reduce risk and deliver long-term value.

CynergisTek generated approximately $15 million in revenues and $5.0 million of  EBITDA in 2016.  The transaction is expected to be substantially accretive to 2017 EPS.  CynergisTek will continue to operate independently as a wholly-owned subsidiary of Auxilio, offering end-to-end IT security solutions to a diverse and growing customer base, including some of the largest and most prestigious health systems in the country. As part of the deal, Auxilio’s Redspin division will become part of CynergisTek, to complement existing offerings such as penetration testing, security assessment and risk management solutions, and to bolster technical resources and capabilities.  CynergisTek has provided services to hundreds of hospitals and healthcare organizations since its inception in 2004 and was recently recognized by KLAS, a provider of unbiased vendor performance data for the healthcare IT security sector, as the highest-rated firm that healthcare provider organizations rely on for security consulting and services.

The initial consideration paid to CynergisTek of approximately $26.8 million consists of $15 million in cash, approximately 1.17 million shares of Auxilio common stock and a seller’s note in the amount of $9 million.  Auxilio will enter into a 5 year term loan from Avid Bank in the amount of $14 million to fund the cash portion.

“We have long stated our desire to expand our reach in healthcare IT security and this acquisition puts us in an immediate leadership position in the category.  We have come to know the founders and employees of CynergisTek quite well over the last couple of years and from the earliest conversations it was obvious we shared a vision of what the future of healthcare IT security and document workflow looked like and how the two will become increasingly intertwined,” stated Joe Flynn, CEO of Auxilio.  “While CynergisTek will continue to operate independently, there are numerous opportunities for mutually assisted growth over the near term and we foresee the ability to offer services under a combined umbrella over time.  This is a truly unique fit and we could not be more excited to complete this transaction.”

CynergisTek founders, Mac McMillan and Dr. Michael Mathews, will take Board positions in the combined entity and assume a significant ownership stake to ensure the continued leadership and integrity of the CynergisTek brand. The companies plan to align their service offerings to provide comprehensive information management solutions designed to mitigate risk, optimize productivity and drive savings for healthcare organizations.

“With assets from Auxilio, we’ll have what we need to extend our offerings and to keep pace with market demand while simultaneously maintaining the superior level of client support we’ve become known for,” said Mac McMillan, CynergisTek CEO.  “Our clients recognize that document and device security are important components of their overall security risk profile and the ability to deliver an integrated approach to managing those aspects of their infrastructure along with the digital pieces we’ve traditionally focused on is something we are laying the foundation for now.”

About CynergisTek

CynergisTek (www.cynergistek.com) is a top-ranked cybersecurity and privacy consulting firm. The company offers solutions to help organizations measure privacy and security programs against regulatory requirements and assists in developing risk management best practices. Since 2004 the company has served as a partner to hundreds in the healthcare industry. CynergisTek is also dedicated to supporting and educating the industry by contributing to relevant associations such as HIMSS, AHIMA, HFMA, HCCA, AHIA, AHLA, IAPP and CHIME. The company has been named in numerous research reports as one of the top firms that provider organizations turn to for privacy and security, including the 2016 KLAS Security Advisory Services report, which rated CynergisTek for having the highest overall client satisfaction, performance and impact on security preparedness.

About Auxilio

Auxilio (www.auxilioinc.com) provides complete document workflow solutions and IT security services to healthcare organizations across the United States. Auxilio has helped its clients save more than $80 million since 2004 by providing solutions which lower costs, improve operational efficiency and enhance security. Auxilio’s iPLATFORM, an intelligent workflow automation suite delivers a customer driven, vendor neutral approach to secure patient health information, reduce waste and drive additional savings opportunities. Auxilio serves a national portfolio of nearly 220 hospital campuses and manages over 1.5 billion documents annually from over 90,000 devices supporting over 280,000 caregivers.

January 17, 2017 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.