3M entered into a definitive agreement to acquire the technology business of M*Modal, for a total enterprise value of $1 billion.
M*Modal is a healthcare technology provider, offering cloud-based, artificial intelligence-powered systems that aim to improve capture of patient data. 3M's Health Information Systems business works with 8,000-plus healthcare organizations worldwide. Its offerings include clinical documentation and risk assessment systems.
Per the agreement, 3M will maintain a strategic business relationship with M*Modal's remaining transcription, scribing and coding services business, which it is not acquiring.
M*Modal's technology business' annual revenue is expected to total approximately $200 million. Around 750 M*Modal employees will join 3M once the transaction is completed. 3M estimates the acquisition to be $0.10 dilutive to earnings in the first 12 months following completion of the transaction on a GAAP reported basis.
The transaction, which is subject to closing conditions and regulatory approval, is expected to close in the first half of 2019.