Summary:
Eargo and HearX, maker of Lexie hearing aids, have merged to form LXE Hearing, a new over-the-counter hearing aid company backed by a $100 million investment from Patient Square Capital.
Key Takeaways:
- Strategic Merger:Â LXE Hearing combines the strengths of Eargo and Lexie, marking the first major OTC hearing aid merger since the FDA created the category in 2022.
- Innovation and Integration:Â The company aims to enhance accessibility and user experience by merging product technology, mobile platforms, and customer systems.
- Leadership and Backing:Â Led by HearX CEO Nic Klopper and supported by a significant investment from Patient Square Capital, LXE Hearing aims to make hearing health solutions more accessible and affordable.
Hearing health companies Eargo and HearX, maker of Lexie hearing aids, have completed their merger, resulting in the creation of a combined company called LXE Hearing. Backed by an additional $100 million investment from Patient Square Capital, the deal creates a new hearing health company and, according to the new company, is the first notable combination for the over-the-counter (OTC) hearing aid market since the FDA established the regulatory category in 2022.
LXE Hearing will operate as one company with its two established consumer hearing aid brands, Eargo and Lexie Hearing. With a collective 25 years of experience in hearing health, LXE Hearing is looking to marry Eargo’s and Lexie’s award-winning credentials in design, device features, sound technology, and mobile platforms. LXE Hearing will also be combining product technology platforms and customer relationship management systems to create a more streamlined experience for all their business partners.
LXE Hearing draws on both companies’ clinical standards and scientific research, with more than 52 peer-reviewed articles validating the technology along with 68 patents.
HearX CEO and co-founder Nic Klopper will serve as CEO for LXE Hearing, with Eargo’s COO and interim CEO Bill Brownie assuming the role of COO.
“The merger between Lexie and Eargo is founded on our shared mission to create hearing health solutions for everyone, everywhere,” said Klopper. “Eargo’s cutting-edge design, emphasis on clinical quality, and customer-first approach to service perfectly complement HearX’s suite of Bose-powered products and its award-winning mobile app. Together, we are going to revolutionize hearing aids and hearing health.”
“HearX and Lexie Hearing are a natural complement to Eargo,” said Brownie. “The combination of our experience, talent, and technology will make hearing health solutions more accessible and affordable for the estimated 44 million American adults who experience hearing loss.”
Patient Square Capital, a dedicated healthcare investment firm that invests in high-quality, growth-oriented healthcare companies, is backing the deal with an additional $100 million investment.
“The vast majority of American adults who suffer from hearing loss currently do not use hearing aids given historical barriers to access and shortcomings with traditional offerings,” said Justin Sabet-Peyman, partner at Patient Square. “We believe that LXE Hearing’s innovative technology and unique go-to-market approach, enhanced by the synergies of the business combination, will provide unprecedented solutions to patients in need of hearing care.”
For more information about LXE Hearing, visit www.lxehearing.com.
