Clean Sweep Live Auction on Thur. March 28th. Click to view the full inventory

DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
Current Location:
> This Story

Log in or Register to rate this News Story
Forward Printable StoryPrint Comment




Health IT Homepage

Building a health data utility: Three secrets to a fresh model for interoperability Teaching healthcare how to share

Healthcare’s ‘valueless data’ problem Information is collected and organized, time to put it to work

Study: 'Convenient' telehealth visits lack coordinated relaying of information Could lead to fragmentation in healthcare, say study authors

Augmented reality bridging the physical and digital gap in healthcare Understanding how AR is allowing for better medical outcomes

Fujifilm and Epsilon Imaging partner to enhance echocardiographic reading Integrating EchoInsight with Fujifilm's Synapse Cardiology PACS

Carestream sells health IT business to Philips Citing 'complementary geographic footprint' Philips acquires leading enterprise imaging platform

Data sharing for imaging trials low, says ESR research committee at ECR Interest is high but concerns remain

Varex Imaging expands service offering to Europe, releases new tube and detector line at ECR Provide technical and logistical support for installations

Canon showcases CT image reconstruction tech and software upgrade at ECR Removing noise while preserving signals

Analytics was a buzzword at HIMSS, but only half of hospitals are taking advantage Physician buy-in is crucial to implementing change

3M is paying $1 billion to acquire M*Modal's
technology business

3M to acquire M*Modal technology business for $1 billion

by John R. Fischer , Staff Reporter
3M is set to acquire the technology business of M*Modal, a provider of cloud-based, conversational AI-powered systems, for $1 billion.

The Minnesota-based manufacturer seeks to use M*Modal’s technology and resources to strengthen its revenue cycle management and population health priority growth platform, as well as build up the progress of its Health Information Systems business, which works with more than 8,000 healthcare providers and payers worldwide to deliver software and services.

Story Continues Below Advertisement


Special-Pricing Available on Medical Displays, Patient Monitors, Recorders, Printers, Media, Ultrasound Machines, and Cameras.This includes Top Brands such as SONY, BARCO, NDS, NEC, LG, EDAN, EIZO, ELO, FSN, PANASONIC, MITSUBISHI, OLYMPUS, & WIDE.

“Together, we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers,” Mike Vale, executive vice president of 3M Health Care Business Group, said in a statement.

The acquisition follows a number of achievements scored by 3M this year, including the recent FDA clearance of its 3M Attest Super Rapid Biological Indicator (BI) System for Steam, which provides BI test results in just 24 minutes, and the introduction of its single-patient stethoscopes for patients in isolation to prevent the transmission of infectious diseases.

Annual revenue of M*Modal’s technology business is estimated to be approximately $200 million. On a GAAP reported basis, 3M estimates the acquisition to be $0.10 dilutive to earnings in the first 12 months following the completion of the transaction.

Excluding purchase accounting adjustments and anticipated one-time expenses related to the transaction and integration, 3M expects the deal to be neutral to its earnings over the same period. The effective enterprise value multiple is approximately 10 times the estimated annual adjusted EBITDA for the first 12 months after the completion of the deal, which includes expected run rate synergies.

The completion of the transaction will bring on board approximately 750 employees from the technology business of M*Modal, located in Pittsburgh.

Not a part of the transaction is M*Modal’s transcription, scribing and coding services business, which will maintain a strategic business relationship with 3M to ensure continuity and strong customer support.

“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, in a statement. “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.”

Advising 3M financially and legally are Goldman Sachs & Co. and Cleary Gottlieb Steen & Hamilton, respectively. M*Modal will be serviced by TripleTree on a financial advice basis and Latham & Watkins as its legal counsel.

The deal is expected to close in the first half of 2019 and will be subject to customary closing conditions and regulatory approvals.

Health IT Homepage

You Must Be Logged In To Post A Comment

Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Gold Service Dealer Program
Receive RFP/PS
Healthcare Providers
See all
HCP Tools
A Job
Parts Hunter +EasyPay
Get Parts
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2019 DOTmed.com, Inc.