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Listen closely as Sivantos and Widex agree to merge
Posted on Wednesday, 16 May 2018 10:29
European hearing aid manufacturers Sivantos and Widex have agreed to merge operations to become a global top-three contender worth a combined EUR 8.00 billion.
The deal is being described as a combination of equals, with the two expected to be owned by EQT funds and co-investors, as well as the Tøpholm and Westermann families of Denmark, which currently control Widex.
Headquarters are expected to be held in Lynge, Denmark and Singapore, with the transaction subject to regulatory approvals.
The merger creates a global hearing aid leader generating combined revenues of EUR 1.60 billion and employing over 10,000 staff.
While the deal is aimed at accelerating growth, strengthening market penetration and enhancing efficiencies to enable additional investments, the transaction also allows both groups to expand research and development (R&D) capabilities.
Sivantos and Widex will have over EUR 100.00 million in annual R&D spending and multi-channel sales across 125.00 million countries.
The end goal is the creation of a global provider with complementary offerings and touchpoints to treat more people with hearing aid needs.
Hearing loss affects around 700.00 million people globally, of which only 10.0 per cent currently use hearing aid devices.
Sivantos offers a range of technology advanced products, with brands such as Signia, Siemens and Rexton.
Widex supplies devices to wholesalers, retail chains and independent retailers, with about 4,250 employees across 38 countries and products sold to 105 locations worldwide.
Marcus Brennecke, a partner at EQT Partners, said: “The combined company presents a unique opportunity for EQT to extend the investment horizon in Sivantos and take part of the next phase of transforming the hearing aid industry.
“With nearly 170 years of combined experience, Sivantos and Widex will take the lead in developing hearing aid technology for future generations.”
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 65 deals targeting electromedical and electrotherapeutic apparatus manufacturing companies announced worldwide since the start of 2018.
The largest such transaction involves Altra Industrial Motion agreeing to acquire US-based electrical and electronic medical equipment manufacturer Stevens Holding Company for USD 3.00 billion.
ANLG Holding Company is picking up high-precision medical imaging equipment group Analogic for USD 1.10 billion in the second-biggest deal.
© Zephus Ltd