MedQuist Holdings has signed a definitive agreement to acquire speech recognition firm M*Modal and its advanced Speech Understanding technology for $130 million.
The transaction by the parent company of speech recognition and transcription technology provider MedQuist could close before the end of the third quarter.
M*Modal's current annualized revenue run rate is $24 million, which includes billing to MedQuist Holdings and comes from the company's proprietary cloud-based software that converts speech into structured clinical information.
The purchase price is subject to customary working capital and cash adjustments, and it includes $48.4 million in cash paid at closing, $28.8 million in installments paid in cash over the next three years, and 4.1 million shares of MedQuist Holdings common stock currently valued at $52.8 million.
