M&A · Industrials · Services-Business Services, NEC
Clearwater Compliance LLC to acquire Cynergistek, Inc
Announced May 23, 2022 · Closed Sep 1, 2022
Deal value$18MEV $18M
Premium112.0%To unaffected price
EV / Adj. EBITDA—1.1x EV / Revenue
ConsiderationAll cash$1.25 per share
Transaction
- Acquirer
- Clearwater Compliance LLC
- Target
- Cynergistek, Inc (CTEK)
- Buyer type
- Strategic
- Offer price per share
- $1.25
- Enterprise value
- $18M
- Status
- Closed Sep 1, 2022
Deal protections
- Break fee (target pays)
- $0.7M · 4.0%
- Reverse fee (buyer pays)
- $0.7M · 4.0%
- Go-shop
- Go-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Craig-Hallum
Sector context · Industrials
- Comparable deals
- 66 in the prior 24 months
- Premium
- 112.0% vs. 47.0% sector median
- EV / Adj. EBITDA
- Sector median 11.0x
- Break fee
- 4.0% vs. 2.8% sector median
Timeline
- AnnouncedMay 23, 2022
- Proxy filedJul 12, 2022
- Definitive proxyJul 25, 2022
- Shareholder voteAug 31, 2022
- ClosedSep 1, 2022
Valuation · fairness opinions
Trading comparables$0.63$1.04
Trading comparables$0.54$1.02
Trading comparables$0.73$1.69
Trading comparables$0.88$2.76
Discounted cash flow$1.58$1.80
Offer $1.25
Implied value per Cynergistek, Inc share by analysis, from Craig-Hallum.