GN Resound announces plan to buy Audigy Group

GN also plans to buy the company, subject to approval from the US competition authorities. The deal could cost GN ReSound $151 million, $90 million up front and then, dependent of financial results, earn-out payments of up to USD 60 million.

Audigy Group is a business management company that helps private independent practice audiologists and hearing care professionals. They provide a suite of services to the audiologist that includes business development tools, finance and human resources, marketing support, operations and professional development.

Anders Hedegaard, CEO of GN ReSound, said about the deal, “Combining GN ReSound’s superior technology and Audigy’s unique business model, with best-in-class business and performance management solutions, will provide an exceptional value proposition to independent hearing care and medical professionals. It is our plan to preserve Audigy’s unique business model and strong management team by keeping Audigy as a separate company and subsidiary of GN ReSound’s US business entity.”

This acquisition fits with the future strategy that Hedegaard spoke to Audio Infos about at the recent American Academy of Audiology conference in Phoenix. He told us, “We need to look at the future and the next step. The next step is clearly to look at the audiologist and to support them better in their practice.” Hedegaard spoke about making the ReSound products part of a “Smarter fitting,” if they could address some key obstacles. The Company wants to look at the whole fitting process, with the audiologist at the centre, “We believe that if you can make it shorter, more rapid, the audiologist can concentrate on the counselling and getting the conversion between the hearing test and the fitting of a hearing aid and the potential risk of a return rate that sometimes is pretty high. We can get that improved.”

To achieve this, Hedegaard said, “We want to go into a dialogue now with the audiologists to understand how can that preferred fit be better, how can it be processed.” He concluded, “We try to listen and to really work together. The good thing about our company is that we are aligned with the audiologists. The audiologists and dispensers are our customers; we are not competing against our customers like some of our competitors do.”

More than just a buying group, Audigy Group has 270 members, who they describe as ‘the leading independent hearing healthcare businesses in North America.’ Brandon Dawson, CEO Audigy Group, started the company in 2004 and in just over ten years has steered the company from $500,000 annual revenue to over $30 million in 2015. The hearing care owner/members own 45% of the company and profits are reinvested into the business. The management team currently own the other 55%. They own their own hearing aid brand – AGX Hearing Aids – and there is even a daily podcast from Dawson providing ‘actionable insights’ to the business owners.

“Partnering with GN ReSound, a leading, innovative hearing technologies company, willing to invest in and support the independent channel in North America, is a significant compliment for our members and the professionals we serve, and will help us to continue to achieve our mission of impacting independent business owners’ ability to thrive in a consolidating industry,” said Brandon Dawson, CEO Audigy Group.

Starkey and Oticon have been the major hearing aid suppliers to Audigy Group. Then, in March, Audigy announced that suppliers would be expanded to include Widex and Signia. It remains to be seen what majority percentage of supply GN ReSound will now provide. It’s been a busy year for manufacturers and retailers, with the recent purchase of 1,300 AudioNova centres by Sonova and William Demant buying the French group Audika twelve months ago.