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3M Acquires Cloud-Based AI Business
M*Modal’s health-tech business brings in about $200 million annually.
3M announced this week that it has agreed to acquire M*Modal’s technology business for a total of $1 billion, according to a release.
“This acquisition builds on our strategic commitment to invest 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 of 3M Health Care Business Group.
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3M Health Information Systems works with more than 8,000 healthcare organizations globally to deliver software and services across the continuum of care. Its products combine clinical documentation systems and risk assessment methodologies to help capture, analyze and advance patient information.
M*Modal is a healthcare technology provider of cloud-based, conversational artificial intelligence-powered systems for medical speech recognition, medical transcription, clinical documentation improvement and coding.
“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 Michael Finke, president of M*Modal.
Although 3M only acquired M*Modal’s technology business, which generates an estimated $200 million in revenue annually, 3M will maintain a business relationship with M*Modal’s transcription, scribing and coding services business.
The transaction is expected to close in the first half of 2019, pending closing conditions and regulatory approvals.
3M will be adding approximately 750 employees from M*Modal’s technology business.
“Together, we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers,” said Vale.
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