3M acquires HealthTech business for $1bn
Written by Peter Walker
3M has entered into a definitive agreement to acquire M*Modal for a total enterprise value of $1 billion.
M*Modal is a healthcare technology provider of cloud-based, conversational artificial intelligence (AI) powered systems that help physicians efficiently capture and improve conversations with patients.
“This acquisition builds on our strategic commitment to invest in our Health Information Systems business and expands the capabilities of our revenue cycle management and population health priority growth platform,” said Mike Vale, executive vice president at the 3M Health Care Business Group.
3M Health Information Systems works with more than 8,000 healthcare organisations worldwide, to deliver software and services, combining clinical documentation systems and risk assessment methodologies to help accurately capture, analyse and advance patient information.
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.
Michael Finke, president of M*Modal, added: “By combining capabilities, we can more quickly deliver on our mission of bringing conversational AI and ambient intelligence directly into clinical workflows.”
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.