India-based Mindtree’s acquisition of Magnet 360 three years ago apparently is working.
Magnet 360, also a Salesforce.com affiliate, has grown from 160 to 450 employees globally since the $50 million acquisition was announced in January 2016.
Magnet, now part of a division of global IT consulting firm Mindtree, has opened an expanded, 30,000-square-foot headquarters in St. Louis Park.
“Magnet, locally, is about 125 people and we have room for up to 325,” said Magnet 360 CEO Matt Meents.
“We’ve had about 20 percent annual growth over the last three years,” Meents said. “Companies are investing in digital transformation.
“Being a Salesforce partner, we have a lot of offerings that help our clients reduce sales and marketing costs and help increase sales and ultimately profitability. Our customers buy Salesforce [software] and then we help them implement the strategies.”
The clients are mostly Fortune 200 firms, including Ecolab, U.S. Bancorp and Best Buy.
Meents said the new headquarters features a 1,300-square-foot innovation “garage.”
“We feel a lot of great brands came out of a garage,” Meents said.
Magnet 360 had revenue of $25 million before its 2016 acquisition and said it was growing by more than 20 percent annually in recent years.
Scott Litman and Dan Mallin, veteran tech marketing entrepreneurs, formed Magnet 360 in 2008. The majority partner was Skip Gage, the longtime marketing executive and founder of Gage Marketing. Gage was chairman of Magnet 360’s board.
They and subsequent investors Salesforce and StarTec Investments, and several individuals, infused nearly $5 million by 2013 to roll out what became a fast-growing firm with more than $25 million in revenue.
Neal St. Anthony
Schowalter jumps to HealthPartners
CEO Jim Schowalter of the trade group for Minnesota’s nonprofit health insurers will move in March to a post at HealthPartners.
Schowalter joined the Minnesota Council of Health Plans in January 2015 as the industry was suffering big losses in the market where individuals purchase health insurance.
The individual market underwent fundamental change in 2014 under the federal Affordable Care Act. The trade group and Schowalter were in the position of explaining why carriers imposed big premium increases and network restrictions that angered many who buy health insurance on their own; he also was part of an industry push for state-funded programs that helped prop up the individual market.
At HealthPartners, Schowalter will be senior vice president of provider partnerships.
“Schowalter will lead the organization’s strategic partnerships in current markets, as well as help develop new relationships that extend HealthPartners’ mission into new ones,” the nonprofit group said in a news release.
HealthPartners, a large nonprofit health insurer, also operates a growing network of facilities including Regions Hospital and the Park Nicollet health system.
Before becoming CEO of the trade group, Schowalter worked in state government finance over two decades, spanning administrations led by DFL, Republican and Independence party governors.
Under DFL Gov. Mark Dayton, Schowalter was commissioner of Minnesota Management and Budget where he oversaw state budgets — from a time of massive deficits to a $1 billion surplus when he left.
The trade group says it will search for Schowalter’s successor.
Health information systems
3M closes deal for technology business
3M Co. has completed the $1 billion acquisition of MModal’s technology business, officials announced.
The move is expected to expand 3M’s health information systems business by giving it MModal cloud-based and conversational artificial-intelligence powered systems that help doctors capture patient information.
MModal, which generates about $200 million in revenue a year, will add a new tool to 3M’s health information systems. The 3M entity already provides software and services to about 8,000 health care organizations worldwide, officials said.
“Adding MModal’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,” 3M officials said.
Earlier this week, 3M officials noted that the MModal deal will lower earnings by 10 cents per share in 2019. 3M’s 2019 earnings are now expected to be $10.45 to $10.90 per share.