JP Morgan Chase private investment arm One Equity Partners has inked a definitive agreement to acquire speech recognition and transcription technology developer M*Modal for $1.1 billion in cash.
One Equity Partners will pay $14 per share for M*Modal, representing an 8.3% premium over the common stock's closing price on July 2. The deal is expected to close in the third quarter of 2012.
The deal is conditioned upon satisfaction of the minimum tender condition of a majority of the shares of M*Modal's common stock on a fully diluted basis or shareholder approval, the receipt of U.S. antitrust approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and other customary closing conditions.
M*Modal said that investment funds affiliated with SAC Private Capital Group, collectively its largest shareholder with approximately 31% of its aggregate outstanding shares, have agreed to tender their shares into the offer and to support the transaction.
