3M to buy technology business for M*Modal in $1bn deal

3M has agreed to buy the technology business of M*Modal for an enterprise value of $1bn.

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 said the deal, which is expected to close in the first half of next year, will be $0.10 dilutive to earnings in the first 12 months after completion on a GAAP reported basis.

Mike Vale, executive vice president of 3M Health Care Business Group, said: "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.

"Together, we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers."

The company said it 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.

M*Modal president Michael Finke said: "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.

"By combining capabilities, we can more quickly deliver on our mission of bringing conversational AI and ambient intelligence directly into clinical workflows. This is a great outcome for our clients, partners and team."