3M to acquire M*Modal’s technology business for around $1 billion

The acquisition will enhance 3M’s Health Information Systems (HIS) business and revenue cycle management capabilities

American multinational conglomerate, 3M has recently entered into a definitive agreement to acquire leading healthcare technology provider, M*Modal’s technology business, for a total enterprise value of around $1 billion.

For the record, M*Modal is a leading provider of cloud-based, conversational AI powered healthcare systems which helps physicians identify and improve patient’s experience and provide higher quality healthcare solutions.

According to Nasdaq, Mike Vale, Executive VP, 3M Health Care Business Group, said that the acquisition is a part of the firm’s strategic commitment to invest in its Health Information Systems business and expand 3M’s revenue cycle management capabilities and population health priority growth platform. He said that the move will enable doctors improve patient’s experience, while enhancing operational efficiency and documentation accuracy for both buyers and suppliers.

Michael Finke, President, M*Modal, was quoted saying that the company is excited to accelerate its vision of creating time to care for more clients with 3M’s resources and global reach. He said that the combined capabilities will accelerate the company’s mission of bringing conversational AI and ambient intelligence straight into clinical workflows.

Sources claim that 3M will also maintain a strategic business relationship with M*Modal’s remaining scribing, transcription, and coding services business, to help confirm continuity and strong customer support.

As per reports, the transaction is anticipated be concluded in the first half of 2019, subject to regulatory approvals and customary closing conditions. Further, around 750 employees supporting M*Modal’s technology business are expected to join 3M upon completion of the transaction.

Global investment bank Goldman Sachs & Co. LLC was 3M’s financial advisor in the deal with Cleary Gottlieb Steen & Hamilton LLP as a legal counsel. Meanwhile, TripleTree LLC acted as the financial advisor to M*Modal along with Latham & Watkins LLP as a legal counsel, cite sources.