3M announced that it has entered into a definitive agreement to acquire the technology business of M*Modal, for a total enterprise value of $1.0 billion. M*Modal is a healthcare technology provider of cloud-based, conversational Artificial Intelligence (AI)-powered systems that help physicians efficiently capture and improve the patient narrative, so they can spend more time with their patients and provide higher quality of care.
3M will maintain a strategic business relationship with M*Modal’s remaining transcription, scribing and coding services business, which is not part of this transaction, to help ensure continuity and strong customer support. Annual revenue of M*Modal’s technology business is estimated to be approximately $200 million.
3M Health Information Systems (HIS) business works with more than 8,000 healthcare organizations worldwide, both providers and payers, to deliver software and services across the continuum of care. 3M HIS offerings—which include the 3MTM 360 EncompassTMsoftware platform—combine clinical documentation systems and risk assessment methodologies to help accurately capture, analyze, and advance patient information.
The transaction is expected to close in the first half of 2019, subject to customary closing conditions and regulatory approvals.
Approximately 750 employees supporting the technology business of M*Modal are expected to join 3M upon completion of the transaction. The business is based in Pittsburgh, PA.
