Advanced Bionics (AB), the only U.S.-based manufacturer of cochlear implants (or “bionic ears”), announced today that it has entered into a definitive merger agreement with Sonova Holding AG, the world’s leading provider of hearing systems. Pending regulatory and shareholder approval, the transaction is expected to close within the next three months. The acquisition represents a strategic expansion into the area of cochlear implants for the Sonova Group, enabling the group to offer a comprehensive range of solutions for hearing loss.
“Sonova was attracted to our company for our advanced technology, commitment to our patients and our potential for expansion,” said Jeffrey Greiner, CEO of Advanced Bionics. “Not only will we continue to grow under the leadership of Sonova, but we have taken an enormous step toward ensuring that AB remains the industry’s performance leader, now and in the future. We are truly excited by the technological possibilities that this acquisition will offer our candidates and our recipients.”
The Sonova Group brings together Advanced Bionics, a global leader in cochlear implant manufacturing, and Phonak, a global provider of micro hearing systems. Both pioneers in their field, Advanced Bionics and Phonak have 75 years of combined experience in engineering innovative hearing solutions.
Like Phonak, AB will remain an independent division within the Sonova Group, but will share the elements that have been driving the success of AB’s new parent company over the last decade: global sales coverage, outstanding customer service, a global supply chain, and a dedication to innovation. The partnership will also provide:
- Versatile, attractive, easy-to-use products
- High-performance hearing devices
- State-of-the-art acoustics and engineering
- Industry-leading technology and performance innovations
- Expanded international distribution
- Lifelong commitment to patients’ needs
- Attentive, caring customer service
- Improved quality of life for patients
In addition, Phonak’s proven capabilities in the field of micro auditory devices will set the stage for AB to develop smaller, higher performing sound processors for patients across the globe. Combined, Sonova, Phonak and Advanced Bionics will provide the most comprehensive product line in the hearing healthcare industry, offering a full range of hearing options for those with mild-to-profound hearing loss.
For the acquisition, UBS Investment Bank acted as exclusive financial advisor and O'Melveny & Myers LLP acted as exclusive legal advisor to Advanced Bionics.
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