Governance & Risk Management , HIPAA/HITECH , Risk Assessments

Auxilio to Acquire Redspin

Pairing Will Expand InfoSec Services in Healthcare Sector
Auxilio to Acquire Redspin

In a move to expand its information security services offerings, Auxilio, best known for its managed print services to hospitals and other healthcare entities, is acquiring Redspin, a provider of HIPAA risk assessment services.

See Also: Reducing Complexity in Healthcare IT

Auxilio, of Mission Viejo, Calif., announced on March 31 that it had signed a definitive acquisition agreement with Redspin, based in Carpinteria, Calif. Terms of the deal were not disclosed.

Redspin, best known for HIPAA risk assessments and penetration testing services, also issues an annual health data breach report.

Auxilio has been expanding its infosec consulting services in the healthcare sector. Last July, it acquired Delphiis, a provider of security process and program development, incident response/forensics, risk assessments and a risk manager software-as-a-service solution to create Auxilio's Security Solutions Group.

"Redspin is a strategic fit with Auxilio's Security Solutions Group by both complementing and further improving its end-to-end security offering," Auxilio says in a statement. The acquisition of Redspin "will enable Auxilio to not only effectively complete the risk assessment at the beginning of the process but also enable ongoing assessment for vulnerabilities once the information security program has been instituted," the statement says.

Redspin CEO Dan Berger tells Information Security Media Group that the company, which employs about 20, will be operated as an independent unit of Auxilio. The acquisition represents "really good synergy" for both companies, he says.

"Redspin and Auxilio both understand the critical need for healthcare organizations to improve their IT security posture," Berger says. "We share a vision and believe we can make a bigger contribution to the industry by combining forces. Auxilio's managed print services and security solutions groups business unit has over 200 hospitals clients. Redspin's client list includes 135 hospitals. We see lots of opportunities for cross-selling."

Berger says that by combining forces, "we are able to expand upon Auxilio's ability to offer services in four core service and product areas: regulatory and penetration testing, including HIPAA security assessments; incident response/forensics; security process and program development; and risk assessment technology. Our vertical market focus is healthcare, but that does not preclude us from selling into other industries."

The deal is expected to close by the end of this week, Berger says. Redspin is a privately held company and Auxilio is publicly held. The combined companies will have more than 325 employees, Berger says. All Redspin employees will join Auxilio, says Berger, who will become executive vice president of the Redspin division.

"This acquisition fits squarely with our strategy of identifying complementary technology and services, led by dynamic leaders who understand the market, have the ability to scale and who can help us take this business to the next level," says Joseph J. Flynn, President and CEO of Auxilio.

About the Author

Marianne Kolbasuk McGee

Marianne Kolbasuk McGee

Executive Editor, HealthcareInfoSecurity, ISMG

McGee is executive editor of Information Security Media Group's media site. She has about 30 years of IT journalism experience, with a focus on healthcare information technology issues for more than 15 years. Before joining ISMG in 2012, she was a reporter at InformationWeek magazine and news site and played a lead role in the launch of InformationWeek's healthcare IT media site.

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