Siemens Audiology’s New Name Is Sivantos; Purchase Finalized
The purchase of Siemens Audiology Solutions has been finalized and a name has been chosen for the newly acquired Siemens hearing instrument division: Sivantos, with the tagline “the hearing company.” The private equity investment firm, EQT, with Germany’s Strüngmann family and Siemens as co-investors, are the new owners of Siemens Audiology Solutions effective January 15.
According to the new Sivantos website, and as reported earlier in The Hearing Review, Siemens will remain invested in the new company and participate in future business development. On November 5, Siemens AG reported that it was selling its Siemens Audiology Solutions unit to the Stockholm-based private-equity firm EQT Partners AB and Germany’s Strüngmann family of entrepreneurs as co-investors for €2.15 billion ($2.67 billion) plus an earn-out component—making it the largest M&A in the history of the hearing industry. Both EQT, with the Wallenberg family as anchor investor, and the Struengmann family have extensive experience in healthcare, and they believe the new audiology business will enjoy additional entrepreneurial freedom and flexibility—with positive prospects for customers and employees. EQT reports that its portfolio of companies in Northern and Eastern Europe, Asia, and the US have total sales of more than €25 billion ($28.7 billion) and over 500,000 employees.
EQT and the Strüngmann family have outlined a growth strategy for further developing the hearing aid business. “EQT is fully committed to supporting the management team and employees to further develop the business,” says Marcus Brennecke, Partner at EQT Partners, Investment Advisor to EQT VI. “We want Sivantos to become the industry leader in technology and customer perception.”
According to the new company, the change of control will enable it to continue its successful growth track of the last few years. “Today begins a new and very exciting chapter in our company history,” says Roger Radke, CEO of Sivantos Group and former CEO of Siemens Audiology. “Ahead of us, we have great opportunities to propel our business and bring cutting edge innovation and premium service to our customers.”
“On the heels of the early success of binax™, our latest technology platform, we are accelerating the development of smart products and applications that deliver practical benefits to people with hearing loss,” adds Radke.
Sivantos Group has several key hearing aid brands in its portfolio, including Siemens, Audio Service, and Rexton. As a trademark licensee of Siemens AG, Sivantos Group will continue to develop, market, and sell hearing products under the Siemens brand over the medium term.