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Danish Hearing Aid Company GN ReSound to Buy Audigy for USD 91m Plus Earnouts.

M2 EQUITYBITES-May 16, 2016-Danish Hearing Aid Company GN ReSound to Buy Audigy for USD 91m Plus Earnouts

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16 May 2016 - Danish hearing aid company GN ReSound has signed a long-term supply agreement with US based provider of business and performance management solutions provider Audigy Group. GN ReSound has also entered into a contingent agreement to acquire the Audigy, the company said.

The supply agreement comes into effect immediately. The agreement to acquire Audigy is contingent on approval from the US competition authorities and certain other closing conditions.

GN ReSound said that the total purchase consideration is made up of two components: an up-front payment of USD 91m and earn-out payments of up to USD 60m, which depends on the company's financial success going forward.

Audigy is a US based provider of business and performance management solutions to independent hearing care, otolaryngology, otology and neurotology practices and leading University programmes in North America. Audigy's management and solutions are considered best-in-class as evidenced by consistent double-digit growth.

The company is headquartered in Vancouver, Washington, USA, and was founded in 2004 by current CEO Brandon Dawson. Audigy is a leading channel to independent hearing care professionals in North America with more than 250 network members.

In 2015, members of the Audigy network sold more than 80,000 units through 600 points of sales across North America.

The potential acquisition of Audigy will further GN ReSound's focus on independent hearing health care professionals, including audiology and otolaryngology practices, as well as universities, medical centers and others.

The potential acquisition will not affect GN's financial guidance for 2016.

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Publication:M2 EquityBites (EQB)
Date:May 16, 2016
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