Hearx and Eargo, two over-the-counter hearing aid companies, combine forces to form a single entity, securing a $100 million investment in the process.
LXE Hearing, a new player in the over-the-counter (OTC) hearing aid market, has made a significant move by merging Eargo, Hearx, and Lexie Hearing, and securing a $100 million investment from Patient Square Capital. This consolidation aims to leverage the strengths of these established OTC hearing brands to compete more effectively in the growing hearing aid industry.
The company's CEO, Nic Klopper, has discussed the merger and strategic direction in recent interviews, indicating a focus on expanding market presence and technological integration among the combined brands. One of LXE’s brands, Lexie Hearing, is known for its self-fitting OTC hearing aids and has been highlighted in aging and technology-focused forums as part of LXE’s product suite.
The OTC hearing aid market is evolving rapidly, with technological advancements such as improved Bluetooth connectivity, AI-driven hearing aid fitting, and personalized sound profiles. LXE Hearing’s brands are actively engaged in these areas, aiming to provide innovative solutions for consumers.
While market performance specifics such as sales figures or market share were not detailed in the search results, the strategy reflects combining assets to compete with other major OTC and traditional hearing aid makers, including WS Audiology, Signia, Costco’s Lexie B2 powered by Bose offerings, and new entrants like Sony, HP, and Apple.
Eargo, one of the merged companies, has shown signs of recovery, with a reversal of the trend in the first nine months of 2023, shipping 18,613 devices compared to 15,384 over the comparable period of 2022. Another positive development for LXE Hearing is a report from industry data company Circana, which found Lexie to be the number one hearing aid brand in the U.S. from August 2023 to July 2024.
In addition to the merger, Eargo launched two new over-the-counter hearing aids, Eargo SE and Link by Eargo, as a private company. Users can take an in-app hearing test to tailor the devices to their specific requirements.
The Food and Drug Administration published a final rule in 2022, creating the OTC hearing aid market, and LXE Hearing is positioned to take advantage of this new landscape. The company's CEO, Nic Klopper, will serve as CEO of the combined company, with Eargo's interim CEO Bill Brownie taking on the role of COO.
With the consolidation of these major brands and the significant investment, LXE Hearing is poised to make a significant impact in the OTC hearing aid market. The competition is fierce, but with a focus on innovation and market expansion, LXE Hearing is well-positioned to compete with both established players and emerging consumer technology integrators.
- LXE Hearing, a aggregation of Eargo, Hearx, and Lexie Hearing, aims to compete more effectively in the OTC hearing aid market with a $100 million investment from Patient Square Capital.
- The CEO of LXE Hearing, Nic Klopper, has discussed the merger and strategic direction, focusing on expanding market presence and technological integration among the combined brands.
- One of LXE’s brands, Lexie Hearing, is recognized for its self-fitting OTC hearing aids and has been featured in aging and technology-focused forums.
- The OTC hearing aid market is undergoing rapid evolution, with advancements such as improved Bluetooth connectivity, AI-driven hearing aid fitting, and personalized sound profiles.
- Eargo, one of the merged companies, has shown signs of recovery, with a growth in device shipping during the first nine months of 2023 compared to the previous year.
- The Food and Drug Administration published a final rule in 2022, creating the OTC hearing aid market, and LXE Hearing is positioned to take advantage of this new landscape.
- LXE Hearing is poised to make a significant impact in the OTC hearing aid market with its consolidation of major brands, substantial investment, and a focus on innovation and market expansion.
