EQT VI has entered into an agreement to acquire Siemens Audiology Solutions (the “Company”) from Siemens AG (“Siemens”) together with Santo Holding, the investment vehicle of the German Strüngmann family, as minority co-investor. The Company is a leading global manufacturer of hearing aids acknowledged for its innovative and high-quality products. R&D has always been a core area for the Company having been fostered by Siemens strong technology heritage. The Company’s management team will continue to drive future development and growth.
Siemens Audiology Solutions has its beginnings in Germany back in 1878 when the first telephone receiver was developed by Siemens enabling hearing impaired people to comprehend conversations better over the phone. The key R&D division is located in Germany and the German organization will continue to play a key role in the Company. Siemens Audiology Solutions is headquartered in Singapore and employs approximately 5,000 people worldwide. Since the launch of the highly competitive miconTMproduct platform in 2012, the Company has experienced accelerated growth. This is expected to continue based on the successful launch of the binaxTMproduct platform in October 2014. Over the last 12 months the Company sold more than three million hearing aids, making a true difference in life for hearing impaired people. In fiscal year 2014 (ending September 30, 2014), Siemens Audiology Solutions generated revenues of EUR 693 million.
“The Company has a strong heritage of innovative, high-quality products and we have been particularly impressed with their strong track record over the last couple of years led by CEO Roger Radke and his team. We have followed the Company and the industry closely for many years and we believe Siemens Audiology Solutions provides the ideal platform for an entry into this attractive industry. EQT VI is fully committed to supporting the management and employees in taking the Company to the next level through EQT’s growth oriented approach and by putting in place a highly relevant industrial board,” says Marcus Brennecke, Partner at EQT Partners, Investment Advisor to EQT VI.
”In the past years, Siemens Healthcare has invested significantly in its audiology business to become one of the strongest player in the market. We are pleased to take a partner on board with a track record of creating value by applying a long-term industrial approach with focus on growing the top-line. Thanks to the Wallenberg family background of EQT and their co-investor, the Strüngmann family, we are confident that the audiology business will be treated with the right industrial values. Siemens has decided to reinvest a part of the proceeds to continue as a shareholder benefitting from the development and a much stronger IPO candidate in the future,” says Hermann Requardt, CEO of Siemens Healthcare.
“The management team is very excited about getting EQT as a new partner and we are looking forward to taking our business to its full potential through continued investments and by leveraging EQT’s strong network of Industrial Advisors with specific hearing aids and broader healthcare expertise,” says Roger Radke, CEO of Siemens Audiology Solutions.
The acquisition of Siemens Audiology Solutions underlines EQT’s strong focus on the healthcare sector with nine healthcare companies currently in the EQT portfolio as well as 8 exited healthcare companies.
EQT VI was advised by Freshfields, Bain & Company, PwC, Latham & Watkins and Aon.
Santo Holding was advised by honert + partner.
Financing is provided by Deutsche Bank, Goldman Sachs and UBS.
Marcus Brennecke, Partner at EQT Partners, Investment Advisor to EQT VI, +49 89 255499 20
Johan Hähnel, EQT VI Spokesperson, +46 706 05 63 34
EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the US with total sales of more than EUR 25 billion and over 500,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
More information can be found on www.eqt.se
About Siemens Audiology Solutions
Siemens Audiology Solutions’ roots go back to 1878, when Werner von Siemens developed a telephone receiver with substantially improved transmission quality. Today, the company is one of the world’s top manufacturers for hearing aids. Siemens Audiology Solutions’ employ about 5,000 people in more than 25 countries. The international sales department serves customers in another 95 countries.
Development is a top priority and this is why the Company can claim to have achieved many “world’s firsts” in the hearing aid history, one of which was the first hearing instrument featuring a wireless system. In 2012 their researchers, in collaboration with the University of Oldenburg, won the German Future Prize (Deutscher Zukunftspreis) for having developed a binaural hearing system that enables hearing aids in both ears to communicate with each other.
More information can be found on https://global.hearing.siemens.com/