Eargo, which makes tech-enabled hearing aids, and hearX, maker of Lexie hearing aids, announced they have merged to form a new company, LXE Hearing.
Eargo is a direct-to-consumer hearing aid company, while hearX markets a suite of digital, mobile technologies for hearing loss detection and diagnosis.
LXE Hearing received $100 million in financing from Patient Square Capital.
The company touts that it is the “first notable combination for the over-the-counter (OTC) hearing aid market” since the FDA created the regulatory category in 2022.
CEO and cofounder of hearX Nic Klopper has been named CEO of LXE Hearing, and Eargo’s COO and interim CEO, Bill Brownie, will be COO of the new company.
LXE Hearing will function as one company with its two established consumer hearing aid brands, Eargo and Lexie Hearing.
“The merger between Lexie and Eargo is founded on our shared mission to create hearing health solutions for everyone, everywhere,” Klopper said in a statement.
“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.”
Brownie asserted that hearX and Lexie Hearing are a natural complement to Eargo.
“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,” Brownie said in a statement.
THE LARGER TREND
In 2022, Patient Square Capital became the majority owner of Eargo, holding almost 76.3% of Eargo stock via the conversion of senior secured convertible notes. The offering brought in nearly $32.3 million, including a $5.5 million investment from Patient Square.
That same year, Eargo rolled out its sixth-generation hearing aid. The updated device came equipped with “mask mode” to help mitigate the challenges one faces when speaking to someone wearing a mask. The device sold for $2,950.
Another company in the hearing aid space is Soundwave Hearing. In 2023, Soundwave received FDA 510(k) clearance for its Sontro Self-Fitting OTC Hearing Aids, which blend mobile technology and artificial intelligence calibration capabilities to self-fit and amplify sound for individuals aged 18 and older with mild to moderate perceived hearing impairment.
Last year, Apple received FDA clearance for its over-the-counter hearing aid software embedded in its AirPods Pro headphones.
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