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Cochlear completes takeover of Oticon Medical cochlear implant business

Manufacturing News

Hearing implant manufacturer Cochlear has announced the completion of its acquisition of the Oticon Medical cochlear implant business from Demant, following the end of a protracted battle with competition authorities.

The business, which has 20,000 implant patients, became available following Demant’s decision to discontinue work on hearing implants.

Cochlear’s CEO & President Dig Howitt welcomed Oticon Medical’s cochlear implant customers to Cochlear, saying the company was committed to supporting their long-term hearing outcomes.

Howitt said: “Customers are our priority as we work closely with Demant for a smooth transition.

“We will develop and commercialise next generation sound processors and services to enable the vast majority of customers to transition to Cochlear’s technology platform over time.

“We will also support customers with continued access to repairs and replacements of current Oticon Medical cochlear implant technology for as long as feasible.”

Purchased for a zero headline purchase price, the amalgamation of the two businesses came to the attention of regulators in Australia and overseas.

The UK Competition and Markets Authority (CMA) and Australian Competition and Consumer Commission both raised concerns over the takeover, however were persuaded that without Cochlear patients faced an uncertain future in maintaining their implants.

The acquired cochlear implant business will be integrated into Cochlear over the next few months, with Cochlear expecting to incur integration costs in FY24 of around $30 million pre-tax, primarily related to restructuring.

Further reading:
Cochlear disagrees with new competition concerns over takeover

Picture: Oticon Medical

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