3M Co. will acquire the health care technology business of M*Modal for about $1 billion.
The deal announced Wednesday will give Maplewood-based 3M a health care technology firm specializing in cloud-based, conversational artificial intelligence systems that help physicians capture patient information.
M*Modal's technology unit is based in Pittsburgh has 750 workers and generates about $200 million in annual revenue.
Once completed, the new entity will join 3M's health care business, which generated $5.8 billion in 2017 sales and $1.7 billion in operating profits. The deal first must be approved by regulators but is expected to close by mid-2019.
"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," said Mike Vale, 3M's executive vice president for health care, in a statement. "Together, we will enable doctors to improve the patient experience, while enhancing documentation accuracy and operational efficiency for both providers and payers."
M*Modal President Michael Finke said in a statement that the combined companies "can more quickly deliver on our mission of bringing conversational artificial intelligence and ambient intelligence directly into clinical workflows."
3M said it will maintain a strategic business relationship with M*Modal's remaining transcription, scribing and coding services business that is not part of the acquisition.
3M officials said the deal is expected to dilute earnings by about 10 cents a share in the first 12 months following the completion of the transaction.
The company's stock on Wednesday lost about 2 percent of its value, closing at $189.96.