Otix Global Inc, Salt Lake City, the parent company of Sonic Innovations Inc and HearingLife, has entered into a definitive merger agreement with William Demant Holding A/S (WDH), Smorum, Denmark, the parent company of hearing aid companies, Oticon and Bernafon. Under the merger agreement, WDH will pay $8.60 for each outstanding share of Otix common stock.
“In a short period of time, Otix Global has grown from an innovative start-up company to a leading manufacturer and distributor of superior hearing solutions under its Sonic and HearingLife brands," said Otix Chairman and CEO Sam Westover. "Our product lines have garnered industry attention and awards and are representative of the innovative technology for which Otix is known. The merger with William Demant will provide the research and development, marketing and sales support, and resources necessary to further expand Sonic and HearingLife’s presence in the hearing health care industry.”
The proposed transaction represents a 112% and 125% premium to Otix’s 5-day and 30-day average stock prices, respectively, as of the last trading day before the merger announcement. The boards of directors of Otix and WDH have given their approvals to the transaction, which is subject to German and Australian merger control regulations, and other customary closing conditions. The agreement will require the approval of Otix’s shareholders.
It is anticipated that the merger will be completed between mid-November and the end of 2010.
“Otix is proud of the many achievements and contributions it has made to the hearing aid industry," Westover said. "As a pioneer to the industry, many of Otix Global’s technologies have become standard in the industry today. The company’s commitment to manufacture and market products to improve the hearing of millions of people worldwide will only be strengthened by the merger.”
Otix Global has decided to discontinue its operations in Germany as of September 14, 2010. In explaining this decision, Westover said “the regulatory obstacles in Germany have dramatically impacted the feasibility of stability of our business and, as a result, we have made the decision to discontinue our operations.”
Otix Global designs, develops, manufactures, and markets advanced digital hearing aids.
[Source: Otix Global]
