MModal to Disclose Data to Settle Suits Over Acquisition
MModal Inc., a maker of medical- transcription software, agreed to make more disclosures about a $1.1 billion buyout offer by a unit of JPMorgan Chase & Co. (JPM) to settle investor lawsuits over the acquisition, according to court filings.
MModal agreed to disclose more information about projections used by the company’s financial advisers in evaluating the fairness of the $14-a-share offer from JPMorgan’s One Equity Partners to resolve the suits, Delaware Chancery Court filings show. One Equity executives also agreed to extend the tender deadline for MModal shares by one day to Aug. 14 as part of the accord.
MModal shareholders and the companies were able to reach an agreement that resolves “all claims relating to the merger agreement,” according to an Aug. 8 filing. The accord still needs a judge’s approval.
One Equity Partners, New York-based JPMorgan’s private investment arm, agreed July 3 to pay the $14 a share in cash for MModal, which amounted to an 8.3 percent premium for shares of the maker of medical document-processing technology, MModal officials said last month.
MModal investors argued in court filings last month the company’s directors wrongfully rejected a $17-a-share offer from Nuance Communications Inc. (NUAN), its primary competitor. Burlington, Massachusetts-based Nuance makes speech-recognition software.