3M today announced that it has completed the acquisition of M*Modal’s
technology business for a total enterprise value of $1 billion.
M*Modal’s technology business provides cloud-based, conversational
Artificial Intelligence (AI)-powered systems that will expand the
capabilities of 3M’s Health Information Systems business.
M*Modal’s technology business provides AI-powered systems that help
physicians efficiently capture and improve the patient narrative so they
can spend more time with their patients and provide higher quality of
care. Annual revenue of M*Modal’s technology business is estimated to be
approximately $200 million.
3M’s Health Information Systems business works with more than 8,000
healthcare organizations worldwide, both providers and payers, to
deliver software and services across the continuum of care. Its
offerings combine clinical documentation systems and risk assessment
methodologies to help accurately capture, analyze and advance patient
information.
Adding M*Modal’s technology business to 3M’s Health Information Systems
will enable physicians to improve the patient experience, while
enhancing documentation accuracy and operational efficiency for both
providers and payers.
The financial impact of this acquisition was reflected in the company’s
full-year 2019 guidance as the company discussed on its Jan. 29, 2019,
earnings conference call.
Forward-Looking Statements
This news release contains
forward-looking information about 3M's financial results and estimates
and business prospects that involve substantial risks and uncertainties.
You can identify these statements by the use of words such as
"anticipate," "estimate," "expect," "aim," "project," "intend," "plan,"
"believe," "will," "should," "could," "target," "forecast" and other
words and terms of similar meaning in connection with any discussion of
future operating or financial performance or business plans or
prospects. Among the factors that could cause actual results to differ
materially are the following: (1) worldwide economic, political, and
capital markets conditions and other factors beyond the Company's
control, including natural and other disasters or climate change
affecting the operations of the Company or its customers and suppliers;
(2) the Company's credit ratings and its cost of capital; (3)
competitive conditions and customer preferences; (4) foreign currency
exchange rates and fluctuations in those rates; (5) the timing and
market acceptance of new product offerings; (6) the availability and
cost of purchased components, compounds, raw materials and energy
(including oil and natural gas and their derivatives) due to shortages,
increased demand or supply interruptions (including those caused by
natural and other disasters and other events); (7) the impact of
acquisitions, strategic alliances, divestitures, and other unusual
events resulting from portfolio management actions and other evolving
business strategies, and possible organizational restructuring; (8)
generating fewer productivity improvements than estimated; (9)
unanticipated problems or delays with the phased implementation of a
global enterprise resource planning (ERP) system, or security breaches
and other disruptions to the Company's information technology
infrastructure; (10) financial market risks that may affect the
Company’s funding obligations under defined benefit pension and
postretirement plans; and (11) legal proceedings, including significant
developments that could occur in the legal and regulatory proceedings
described in the Company's Annual Report on Form 10-K for the year ended
Dec. 31, 2017, and any subsequent quarterly reports on Form 10-Q (the
“Reports”). Changes in such assumptions or factors could produce
significantly different results. A further description of these factors
is located in the Reports under "Cautionary Note Concerning Factors That
May Affect Future Results" and "Risk Factors" in Part I, Items 1 and 1A
(Annual Report) and in Part I, Item 2 and Part II, Item 1A (Quarterly
Reports). The information contained in this news release is as of the
date indicated. The Company assumes no obligation to update any
forward-looking statements contained in this news release as a result of
new information or future events or developments.
About 3M
At 3M, we apply science in collaborative ways to
improve lives daily. With $33 billion in sales, our 93,000 employees
connect with customers all around the world. Learn more about 3M’s
creative solutions to the world’s problems at www.3M.com
or on Twitter @3M or @3MNews.
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