Minnesota-based multinational conglomerate 3M has acquired speech recognition software developer M*Modal for $1 billion, according to a report by the Pittsburgh Post-Gazette. M*Modal provides healthcare technology and conversational AI-powered systems for transcribing doctors’ verbal notes.
The companies announced the deal Wednesday, Dec. 19, according to the report. M*Modal’s technology business brings in about $200 million in revenue annually. The acquisition is expected to close in the first of 2019, pending regulatory approvals.
M*Modal President Michael Finke said in the report the deal will allow the company to reach more clients with conversational AI, which can be incorporated into clinical workflows.
3M Executive Vice President Mike Vale said in a prepared statement the “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.”
To read the full report, click the link below.