3M Acquiring Tech Business Arm of M*Modal
In 3M’s first acquisition since Michael Roman became CEO in July, the industrial supplies manufacturing company has nabbed the technology business of M*Modal.
Terms of the purchase were not disclosed, but M*Modal, a healthcare products and services provider, has an enterprise value of $1 billion and annual sales of $200 million, according to Maplewood-based 3M.
Based in Franklin, Tennessee, M*Modal specializes in cloud-based, conversational Artificial Intelligence-powered systems that help physicians provide efficient, quality care to patients. 3M’s move to absorb M*Modal’s technological assets is part of an increased effort to build out 3M’s health information systems business.
“Together [with M*Modal], we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers,” said Mike Vale, executive vice president, 3M Health Care Business Group, in a statement.
In addition to absorbing M*Modal’s products, 3M will absorb about 750 employees involved in M*Modal’s Pittsburgh-based technology business. Meanwhile, M*Modal will retain ownership of its transcription, scribing and coding services.
“We are excited that we can further accelerate our mission of creating time to care for more clients with the resources and global reach of 3M,” said M*Modal president Michael Finke in a statement. “This is a great outcome for our clients, partners and team.”
The transaction is expected to close in the first half of 2019.