Sivantos, currently the third largest hearing aid company globally, has entered into an agreement to purchase Widex of Denmark forming a company reportedly worth $8 billion dollars. Founded in 1956, Widex is the currently the sixth largest hearing aid company. This acquisition, if Long seen as an innovator of hearing aid technology, Widex has a strong focus on tinnitus management. Widex uses a proprietary system of fractal tones to ease the symptoms of tinnitus, or ringing-in-the-ear. They also bring a small network of dispensing clinics to help boost footprint for Sivantos in an effort to gain market share.With a growing market, we can anticipate further amalgamations.
Current ranking of hearing aid companies
William Demant Holdings and Sonova each represent about 25% of the global market sales of hearing aids. This acquisition will secure Sivantos' position as the third largest with an anticipated 24-5% of market share – closing their gap to second substantially. Next is GN with 16% and Starkey with 9% of hearing aid sales. It is important to understand the these large companies have been undertaking merger activity for years. Companies
On one hand, it may be a necessary part of corporate growth, we are always concerned that these mergers will yield fewer choices for consumers. Having a variety of options for our clients is key to successful integration with hearing aid. On the other hand, Sivantos is looking at the the next level of technological integration by adding bio-sensors in the hearing aids that can track, for example, heart beat. Watch out Fitbit. This acquisition may give them the R&D budget necessary to achieve their goals. We just hope they remember these are hearing aids first and focus on the audiology and science of hearing better. Only then should they add the gadget factor.
This acquisition is pending regulatory approvals.
For more information on hearing aid manufacturers and their products go to fchearing.ca/all-about-hearing-aids
For more information on this story visit: www.reuters.com/article/us-sivantos-m-a-widex/sivantos-and-widex-in-8-billion-merger-to-create-no3-in-hearing-aids-idUSKCN1IH0KL