Transaction to constitutes two components, an up-front cash consideration of $75m and earn-out payments
Sonova has successfully completed its acquisition of InSound Medical. InSound Medical developed the extended wear hearing system which is placed deep in the ear canal and is invisible from the outside, and markets it under the Lyric brand.
The total transaction price is made up of two components, an up-front cash consideration of $75m and earn-out payments which depend on the company’s financial success going forward. The regulatory approvals needed for the transaction have been obtained.
The Lyric system can be used for a period of up to 120 days, after which it is removed and replaced by the hearing professional with a new system.
Valentin Chapero, CEO of the Sonova Group, said: “The growth potential in this segment is immense. In the US alone, there are around 36 million people with mild to moderate hearing loss who do not yet wear a hearing system many are potential new customers to whom we can now offer a solution, thanks to Lyric.
“ Lyric is the first product developed in the history of hearing technology which addresses the traditional barriers to widespread acceptance of hearing systems. It is not visible outside the ear canal and the wearer can simply forget that he or she is wearing a hearing system at all for months at a time.”