M*Modal to be acquired by One Equity for $1.1 bln

By Staff Reporter

Jul 03, 2012 10:26 AM EDT

One Equity Partners, JP Morgan Chase & Co's private investment arm, will buy technology services firm M*Modal for about $1.1 billion in cash.

The $14-per-share offer represents a premium of 8.3 percent to M*Modal's Monday close.

The company offers clinical documentation and speech recognition technology to medical professionals. It has 12,000 employees in five countries and had revenue of $450 million in 2011.

One Equity Partners, which manages $11 billion for JP Morgan, will commence a tender offer for M*Modal's outstanding shares by July 17.

Investment funds led by S.A.C. Private Capital Group LLC, which together own about 31 percent of M*Modal, agreed to support the deal.

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

Bank of America Merrill Lynch and RBC Capital Markets are financing One Equity Partners.

Macquarie Capital is acting as lead financial adviser to M*Modal.

M*Modal's stock, which has gained a third of its value this year, closed at $12.93 on Monday on the Nasdaq.

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