Hearing aid company Eargo merges with Hearx, forming a single over-the-counter brand, and secures a $100 million investment.
In a significant move, two established over-the-counter (OTC) hearing aid manufacturers, Lexie and Eargo, have merged to form the LXE Group. The merger, announced in March 2025, was backed by a $100 million investment from Patient Square Capital.
The LXE Group combines the strengths of two companies with complementary product offerings. Eargo specialises in tiny in-ear devices, while Lexie offers receiver-in-canal hearing aids. This synergy is expected to create a formidable presence in the OTC hearing aid market.
Prior to the merger, Lexie had distribution in 12,000 U.S. stores and projected $60 million in revenue, indicating significant retail penetration. The combined revenues and distribution footprint of the LXE Group suggest they hold a meaningful portion of the U.S. OTC hearing aid market.
The overall hearing aids market, including OTC segments, is valued around $10-13 billion with steady growth. OTC legalization has notably boosted retail pharmacy and e-commerce channels, with a Compound Annual Growth Rate (CAGR) of 9.21% in those segments.
Eargo was recognised as a key player in smart hearing solutions and OTC hearing aids, alongside industry leaders like Philips and Phonak. The LXE Group, as their combined entity, leverages both companies’ strong online support and complementary product lines.
Despite the lack of specific market share figures in available reports, LXE Hearing is a notable player in the U.S. OTC hearing aid market. The rapid growth of the OTC hearing aid market, driven by new regulations and consumer access, positions the LXE Group favourably for future success.
[1] Source: LXE Group press release, March 2025 [2] Source: Grand View Research, "OTC Hearing Aids Market Size, Share & Trends Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts, 2021 - 2028" [3] Source: Hearing Review, "Eargo and Lexie: A Marriage of Two OTC Hearing Aid Giants"
- The LXE Group's merger, backed by a $100 million investment from Patient Square Capital, is poised to revolutionize the healthcare sector, particularly in the field of medtech and OTC hearing aids.
- The collaboration between Eargo, known for in-ear devices, and Lexie, offering receiver-in-canal hearing aids, represents a strategic move that could significantly impact the safety and health-and-wellness of millions of people.
- The LXE Group, with its combined resources and AI-driven analytics, is now better equipped to offer innovative solutions in the ever-evolving landscape of technology and finance.
- With the merger, the LXE Group is expected to capitalize on the growing demand for OTC hearing aids, driven by new regulations and increased consumer access, as reported by Grand View Research.
- The fusion of two major players in the OTC hearing aid market, LXE Hearing, could lead to a shift in market dynamics, potentially challenging industry leaders like Philips and Phonak.
- The LXE Group's strong online support, coupled with their complementary product lines, positions them as a formidable competitor, especially in the growing smart hearing solutions segment.
- The FDA's playbook for regulating OTC hearing aids, along with the library of scientific research on medical-conditions related to hearing loss, will undoubtedly play a crucial role in shaping the LXE Group's strategic planning.
- The merger not only represents a significant event in the OTC hearing aid industry but also in the broader scope of business and cybersecurity, given the sensitive nature of healthcare data.
- A series of webinars hosted by the LXE Group could offer insights into their plans for the future, promising an exciting chapter in the evolution of the OTC hearing aid market.
- The news of the LXE Group's merger and subsequent investments has grabbed the attention of numerous stakeholders, including investors, consumers, and industry analysts, making it a pivotal moment for the OTC hearing aid market and the broader healthcare sector.
