Published: 2010-09-27 18:27:40 CEST
GN Store Nord A/S
Company Announcement
GN ReSound has made a Proposal to Acquire Otix Global, Inc.
GN ReSound A/S has today submitted a proposal to the board of directors of
Otix
Global, Inc., an American hearing aid company listed on NASDAQ, to
acquire the
company for a total amount of approximately USD 58 million
(corresponding to
around DKK 325 million). The offer is expected to be
equivalent to a price of
USD 73-78 million on a debt free basis. 

Otix
Global, Inc. develops and sells hearing aids under the brand Sonic to
hearing
care professionals through its own sales companies and an
international
distributor network. Otix Global, Inc. is the world's 8th
largest hearing aid
manufacturer and owns and operates retail activities in
USA and Australia. In
2009, Otix Global, Inc. recorded revenue of USD 96
million. Net profit, excl.
restructuring and impairment charges of USD (31)
million, was USD (8) million.
At December 31, 2009, Otix Global, Inc. equity
amounted to USD 33 million. 

On September 13, 2010, Otix Global, Inc.
announced that it had entered into a
merger agreement with another hearing aid
manufacturer for a total
consideration to Otix Global Inc. shareholders of
approximately USD 50 million.
However, the proposed merger is still subject to
regulatory approvals and the
approval of the Otix Global, Inc. shareholders at
a general meeting. 

As part of the ongoing business GN ReSound is
continuously considering
strategic opportunities. One of these opportunities
has been a potential
acquisition of Otix Global, Inc. that would complement GN
ReSound's strong US
presence and secure a significant position for GN ReSound
in the Australian
hearing aid market. 

Otix Global, Inc. is well known for
its advanced hearing care solutions in
several markets and segments and will
add to GN ReSound's portfolio of
innovative and groundbreaking products if our
proposal is accepted and a
transaction with Otix Global, Inc. completed.


Following GN ReSound's proposal, it is up to the board of directors of
Otix
Global, Inc. to evaluate the proposal and determine whether the
proposal
constitutes a "Superior Proposal" as such term is defined under the
current
merger agreement and, if so, to terminate the current merger agreement
in
accordance with its terms in order to accept our proposal. The completion
of
the transaction outlined in our proposal would require certain
regulatory
approvals and the approval of the Otix Global, Inc. shareholders at
a general
meeting. 


For further information, please contact:

Mikkel
Danvold
Director, IR & Communications

GN Store Nord A/S
Tel: +45 45 75 02
71
 


medd 31 - gn resound has made a proposal to acquire otix global inc.pdf