Ten M*Modal shareholders who came on board last summer when what was then still MedQuist Holdings acquired MultiModal Technologies have registered to sell most of their holdings in the health care IT company. The group, led by Advanced Media and former CEO Michael Finke, would raise more than $45 million if they sold all they plan to this week, but they do face certain trading restrictions until next March. M*Modal stock (Ticker: MODL) is up about 15 percent so far this year.
The University of Texas MD Anderson Cancer Center has selected a software platform developed M*Modal Technologies, which Franklin-based MedQuist Holdings acquired this summer, to be part of its electronic medical records project. News of the contract comes two days after MedQuist shares (Ticker: MEDH) jumped more than 10 percent after it said it had been chosen to work with the Los Angeles County Department of Health Services.
Medical transcription provider MedQuist has completed its $130 million acquisition of M*Modal and provided some guidance about its impact going forward. Vern Davenport, CEO of Franklin-based MedQuist, said M*Modal will add slightly to earnings per share late this year and grow its contribution to EBITDA to about $20 million before 2012 is over. On the flip side, MedQuist will incur costs of about $13 million over the next year to integrate Pittsburgh-based M*Modal.
Pounded by the broader-market turmoil and concerns about its customers' spending, shares of MedQuist (Ticker: MEDH) have lost almost half of their value this month.