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.
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