Summary: Cochlear Limited acquired Oticon Medical’s cochlear implant business from Demant, and will commit to supporting the hearing outcomes of Oticon’s 20,000 cochlear implant customers.
Takeaways:
- Cochlear Limited completed the acquisition of Oticon Medical’s cochlear implant business from Demant, with integration planned over the next few months.
- Cochlear emphasizes continued support for Oticon Medical’s 20,000 cochlear implant customers, aiming to provide long-term hearing solutions and transition them to Cochlear’s technology.
- The acquisition will incur approximately $30 million in integration costs for Cochlear in FY24, reported as a non-recurring significant item, without affecting the company’s FY24 underlying net profit guidance of $385-400 million.
Cochlear Limited, a global provider of implantable hearing solutions, announced the completion of its acquisition of the Oticon Medical cochlear implant business from Demant, with all required conditionality satisfied.
Following Demant’s decision to discontinue its efforts in hearing implants, Cochlear has acquired Demant’s cochlear implant business for a zero headline purchase price.
“We welcome Oticon Medical’s cochlear implant customers to Cochlear and remain committed to supporting the long-term hearing outcomes of these 20,000 patients. Customers are our priority as we work closely with Demant for a smooth transition,” says Cochlear CEO & President Dig Howitt. “Driven by our mission to innovate and deliver a lifetime of hearing outcomes, we will seek to provide Oticon Medical’s cochlear implant customers continued support with a lifetime of hearing solutions.”
Further reading: FDA Clears Lowering Age Requirement of Cochlear Device
The acquired cochlear implant business will be integrated into Cochlear over the next few months.
“We will develop and commercialize next generation sound processors and services to enable the vast majority of customers to transition to Cochlear’s technology platform over time. We will also support customers with continued access to repairs and replacements of current Oticon Medical cochlear implant technology for as long as feasible,” Howitt added.
Cochlear expects to incur integration costs in FY24 of around $30 million pre-tax, primarily related to restructuring. This amount will be reported as a non recurring significant item, with no impact on Cochlear’s FY24 underlying net profit guidance of $385-400 million.
