/>
X
Innovation

3M buys M*Modal's technology assets to expand healthcare business

3M said the deal has a total enterprise value of $1.0 billion.
Written by Natalie Gagliordi, Contributor on
howautomationwillhelpimprovehealthc-5bfe634f60b22131be216d7a1nov29201894058poster.jpg

3M said on Wednesday that it's buying the technology business of M*Modal for a total enterprise value of $1.0 billion. The deal is meant to bolster 3M's health information systems business by bringing in M*Modal's conversational AI software for physicians. 

Based in Pittsburgh, PA, M*Modal makes cloud-based AI systems that aim to help physicians improve patient care. 3M's existing healthcare portfolio includes clinical documentation software and risk assessment systems that work to capture and analyze patient data for healthcare professionals. 

Combined with M*Modal's expertise in AI, 3M is looking to grow its presence in the healthcare sector, where it competes with a number of industry players.  

"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," said Mike Vale, EVP of 3M's Health Care Business Group. "Together, we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers."

The enterprise value figure is a bit wonky and doesn't reflect the actual purchase price, which was not disclosed. 3M did say that the estimated annual revenue of M*Modal's technology business is about $200 million. 3M is also gaining roughly 750 employees from M*Modal's technology business.

Biotech breakthroughs which may change human health forever

PREVIOUS AND RELATED COVERAGE:

What is AI? Everything you need to know about Artificial Intelligence

An executive guide to artificial intelligence, from machine learning and general AI to neural networks.

Alphabet's Verily kicks off long range study to track human health

The 10,000-person study aims to explore why people who are generally healthy become sick.

Alphabet's Verily teams with 3M on new population health management tech

The joint platform will analyze population-level health data sets, with the goal of helping hospitals improve healthcare quality and reduce costs.

Editorial standards

Related

Why designing AI for humans requires 'productive discomfort'
Hand clicking artificial intelligence board

Why designing AI for humans requires 'productive discomfort'

Cyber Monday laptop deal: Save $450 on this 13-inch Samsung Galaxy Book2 360
Samsung Galaxy Book2 Pro 360

Cyber Monday laptop deal: Save $450 on this 13-inch Samsung Galaxy Book2 360

Want a 65-inch TV for under $400? Hisense's 4K Google TV drops to $369
c33

Want a 65-inch TV for under $400? Hisense's 4K Google TV drops to $369