Demant sells its Oticon Medical to Cochlear Limited

Demant has negotiated an agreement with the intention to divest its Hearing Implants business, Oticon Medical, to Cochlear Limited for a total consideration of DKK 850 million. The transaction follows a review of strategic options for the business area, including how to ensure the best lifelong support of existing patients.

As part of the transaction, Cochlear, a leader in implantable solutions for hearing loss, has committed to provide ongoing support for the entire patient base, which include cochlear implants (CI) and bone anchored hearing systems (BAHS).

“Demant remains fully committed to hearing healthcare and audio technology. We will continue to grow and expand in hearing aids, hearing care and diagnostics, where we are uniquely positioned to service users and customers from the first screening, over the first fitting to continued personalised care, and to pursue the strong growth potential in Communications with our EPOS brand.” says, Søren Nielsen, President & CEO of Demant.

From the other side, Dig Howitt, Cochlear’s CEO & President, adds: “We will work closely with Demant to ensure a seamless transition of the business to Cochlear to ensure continued access to current Oticon Medical technology for customers and patients in the coming years. We will develop next-generation sound processors and services that will enable customers to transition to and benefit from Cochlear’s technology platform over time. The acquisition of Oticon Medical will provide us with greater scale and will enable us to increase our investments in R&D and market growth activities.”

Regarding the transaction details, it involves the divestment of Demant’s Hearing Implants business area, which comprises its cochlear implants and bone anchored hearing systems product categories. Of the total consideration of DKK 850 million, DKK 700 million will be paid in cash at closing and DKK 150 million within 18 months after closing. Subject to regulatory approvals and other customary closing conditions, the transaction is expected to close in H2 2022, following consultation of relevant workers’ councils.

Walder Wyss acted as Swiss counsel to Demant and its lead counsel.The team comprised by Urs P. Gnos (partner, corporate/m&a, pictured left) and Christian Hagen (managing associate, corporate/m&a, pictured right).