Sonova to accelerate expansion of direct consumer access in Chinese market with acquisition of leading network of clinics

Key Highlights:

• The HYSOUND Group’s nationwide organization and successful retail business model provides a strong platform for Sonova’s further expansion in China.
• The HYSOUND Group’s strengths make a perfect strategic fit with Sonova’s industry-leading digital engagement capabilities in China, which include a range of strong partnerships and a large volume of online followers and interactions.
• With over 650 well experienced employees and a strong reputation in China's high-end audiology services market, the HYSOUND Group generated net revenue of approximately RMB 230 million (around CHF 32 million) in calendar year 2021, representing a double-digit sales growth, which was achieved despite ongoing challenges related to the COVID pandemic.
• The transaction is expected to close in the second half of FY2022/23, subject to regulatory approval.

Arnd Kaldowski, CEO of Sonova, says: “This is another important move to increase our consumer access through our audiological care business, which is one of the key pillars of our strategy. China is by far the largest high-growth market globally, which is particularly attractive due to their aging population. We project that the rapid growth of their middle class will strongly increase today’s very low hearing instrument penetration in the next 5 to 10 years. This acquisition puts Sonova in an excellent position to achieve a large-scale consumer access in China. HYSOUND Group, with its rapidly growing traditional retail business, represents the perfect platform to further accelerate Sonova’s participation in the audiological care segment of China.” 

William YingWei Wang, Founder & CEO of HYSOUND Group, says: “Sonova is an exceptionally strong player in the global audiological care retail market. The synergies between Sonova and HYSOUND Group will further strengthen our market leadership in China's high-end audiology services market. We will be able to leverage Sonova’s existing capabilities in omni-channel consumer engagement in China, where we were particularly attracted by its combination of digital engagement with brick-and-mortar clinics. We are delighted to have signed this agreement and look forward to working together with the Sonova team to continue providing superior high-tech products and professional services for Chinese customers.”

Goldman Sachs International acted as financial advisor to Sonova on this transaction.

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