New #1 in hearing
Switzerland-based hearing-aid maker Phonak announced it would acquire the hearing-aid division (GN ReSound) of Denmark-based GN Store Nord, a specialist in headsets and audiology testing equipment. The deal is for $2.6 billion.
The buy will double Phonak's revenue and grow it from #3 to #1 in the hearing aid industry worldwide. The hearing aid unit of Germany-based Siemens AG is currently #1. Phonak has a presence in 70 countries worldwide and a strong position in the US market, all of which will be enhanced with the deal.
Phonak outbid Danish firm William Demant Holdings A/S, currently the #2 hearing aid company in the world, under the Oticon brand.
Six players (and soon five) account for almost 90% of worldwide sales in hearing aids. A 2005 estimate of industry market shares shows, Apparently, Phonak had already slipped ahead of two others since then. (Curious how big Denmark is in hearing aids.)
- Siemens, Germany, 21%
- Oticon, Denmark, 18%
- GN Resound, Denmark, 14%
- Starkey Laboratories, U.S., 12%
- Phonak, Switzerland, 11%
- Widex, Denmark, 8%
- Sonic Innovations, U.S., 5%
30+ Others, under 10%
Phonak gets less competition and a leading position in an industry that is certain to grow as the baby boom generation, raised on hard rock and now iPods, gets older.
6:39:41 PM 
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