M*Modal Gets Acquired, Goes Private | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

M*Modal Gets Acquired, Goes Private

July 3, 2012
by Gabriel Perna
| Reprints

M*Modal, a Franklin, Tenn.-based provider ofclinical documentation services, has been acquired by which One Equity Partners, the private investment arm of JP Morgan Chase & Co. One Equity will acquire all of the outstanding shares of M*Modal for $14.00 per share in an all-cash transaction valued at approximately $1.1 billion.

The agreement, which was unanimously approved by M*Modal’s Board of Directors, says that M*Modal shareholders will receive $14.00 in cash for each outstanding share of M*Modal common stock they own representing an 8.3 percent premium over the closing price on July 2, 2012, the last full trading day before today’s announcement, as well as, a 19.3 percent premium over the 180-day volume weighted average closing price of M*Modal common stock ending on such date and a 33.8 percent premium over the 52-week volume weighted average closing price of M*Modal common stock ending on such date.

The deal is expected to close during the third quarter of 2012.

“M*Modal continues to reach major milestones in technological innovation, product leadership and customer successes,” Vern Davenport, Chairman and CEO of M*Modal, said in a statement. “One Equity Partners matches our passion and drive, and we believe will be the right financial partner to accelerate our strategic goals and further enhance our leadership position as the entire industry focuses on improving the cost and quality of care. Our focus is and will continue to be on serving customers through our clinical documentation services and Speech Understanding™ solutions that unlock value from the ‘unstructured’ clinical narrative.”

It is likely that One Equity Partners will commence a tender offer for all of the outstanding shares of M*Modal not later than July 17. M*Modal’s Board of Directors has unanimously recommended that M*Modal’s shareholders tender their shares into the offer. If the tender offer is completed, untendered shares of M*Modal will be converted in the merger into the right to receive the same $14.00 per share price paid in the tender offer.

Investment funds affiliated with S.A.C. Private Capital Group LLC (S.A.C. PCG), collectively M*Modal’s largest shareholder owning approximately 31 percent of M*Modal’s outstanding shares in the aggregate, have agreed to tender their shares into the offer and to support the transaction.

Topics

News

Appalachia Project to Study Relationship Between Increased Broadband Access, Improved Cancer Care

The Federal Communications Commission and the National Cancer Institute have joined forces to focus on how increasing broadband access and adoption in rural areas can improve the lives of rural cancer patients.

Survey: By 2019, 60% of Medicare Revenues will be Tied to Risk

Medical groups and health systems that are members of AMGA (the American Medical Group Association) expect that nearly 60 percent of their revenues from Medicare will be from risk-based products by 2019, according to the results from a recent survey.

83% of Physicians Have Experienced a Cyber Attack, Survey Finds

Eighty-three percent of physicians in a recent survey said that they have experienced some sort of cyber attack, such as phishing and viruses.

Community Data Sharing: Eight Recommendations From San Diego

A learning guide focuses on San Diego’s experience in building a community health information exchange and the realities of embarking on a broad community collaboration to achieve better data sharing.

HealthlinkNY’s Galanis to Step Down as CEO

Christina Galanis, who has served as president and CEO of HealthlinkNY for the past 13 years, will leave her position at the end of the year.

Email-Related Cyber Attacks a Top Concern for Providers

U.S. healthcare providers overwhelmingly rank email as the top source of a potential data breach, according to new research from email and data security company Mimecast and conducted by HIMSS Analytics.