Speech recognition software developer M*Modal’s technology business has been acquired by Minnesota-based multinational conglomerate 3M for $1 billion, the companies announced on Wednesday.
M*Modal, which was spun out of Carnegie Mellon University in 2001, provides health care technology and conversational artificial intelligence-powered systems used in transcribing doctors’ verbal notes. The company is based in Franklin, Tenn. and has offices in Squirrel Hill.
“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,” 3M Executive Vice President Mike Vale said in a prepared statement.
M*Modal President Michael Finke said the deal will allow the company to reach more clients with conversational artificial intelligence, which can be incorporated into clinical workflows.
About 750 M*Modal employees supporting the technology business, which is based in Squirrel Hill, are expected to join 3M when the transaction is inked.
3M will maintain a strategic business relationship with M*Modal’s remaining transcription, scribing and coding services, which was not part of the deal that was announced Wednesday.
M*Modal’s technology business generates about $200 million in revenue annually. The acquisition is expected to close in the first half of 2019 pending regulatory approvals.
Kris B. Mamula: kmamula@post-gazette.com or 412-263-1699
First Published: December 19, 2018, 7:37 p.m.
