The private-equity arm of JPMorgan Chase has agreed to buy Franklin-based M*Modal for more than $1 billion.

News of the acquisition comes less than six months after M*Modal, which develops clinical documentation software, took on its current name on the heels of a summer 2011 $130 million acquisition and just 17 months after the former MedQuist Holdings went public with a whimper.

Officials with One Equity Partners say they plan to keep the M*Modal executive team led by CEO Vern Davenport and invest in the company’s growth.

“M*Modal presents a unique opportunity to acquire a market leader in clinical documentation at a time when the company has successfully released its new generation of speech understanding solutions for healthcare,” said Dick Cashin, managing partner of One Equity Partners. “We will support M*Modal’s outstanding management team to invest in and build on M*Modal’s reputation for technical innovation and quality products and services as the company ramps up its delivery of powerful new solutions.”

The planned cash transaction will allow entities affiliated with New York-based SAC Private Capital Group to cash out their 31 percent stake in M*Modal. SAC is controlled by noted hedge fund manager Steven Cohen.

Of note is that One Equity will pay $14 per M*Modal share, a premium of just 8 percent to Monday’s closing price and 19 percent higher than the stock’s 180-day average close.

M*Modal, whose shares (Ticker: MODL) have nearly doubled since last October, will become the second Tennessee company under One Equity’s umbrella. The 11-year-old firm, which manages about $11 billion worth of investments, also owns Arlington-based implant maker Wright Medical Group. Its other investments range from TV Guide in Hollywood to an RFID play in Amsterdam and a liquefied petroleum gas supplier in Tokyo.