Focus on: Sonova’s expansion and acquisition

To expand Sonova’s offering and to enter the fast-growing market of true wireless headsets and emerging segment of speech-enhanced hearables, in March 2022, we acquired Sennheiser Consumer Division, a leading manufacturer of premium headsets as well as audiophile headphones, enhanced hearing solutions, and soundbars. Given the complex carve out process and structuring of consumer division, the role of our legal team was critical enabling the acquisition to include all rights and assets to operate the business in different countries. Whilst working within our legal team, one external law firm with their global partners supported us with their expertise including trademarks, corporate, and innovation. Our colleagues in other functions also helped us with their expertise of strategy, finance, HR, tax, IT, and marketing. The acquisition process required not only carving out imbedded operations in 25 countries but also establishing a standalone global business with an autonomous R&D, sourcing, manufacturing, IT, distribution, and corporate functions, all of those hosted in newly created legal entities in each country of operations.

The project has been particularly exciting given the multiplicity of the operations; business partners in more than 50 countries were required to bring their expertise to its completion. We also had to be prepared to welcome 600 new colleagues and add a new business that generates sales of around €250m annually through a broad online and in-store distribution of network. Intellectual property rights were a field of particular interest, both in the context of the strong reputation of the Sennheiser brand and the focus of innovation for both companies. To achieve our aim of delivering a high-quality sound experience, we leveraged the combination of our audiological expertise together with the added patent portfolio. With the completion of the acquisition, Sonova formed a new business title of Sonova International while entering the consumer electronics business on a global scale.

With the acquisition of Alpaca Audiology, Sonova International doubled our audiological care business operation in the US. Given that the US is a key component of Sonova strategy to grow its audiological care business, we identified Alpaca Audiology as our potential acquisition target. They are one of the largest independent networks of audiological care clinics in the US, operating around 220 clinics, being a perfect fit and allowing to double Sonova’s network in the United States and significantly expanding our direct customer access in the world largest audiological care market.

The process of executing a binding transaction within a tight deadline was highly demanding as we had to find a law firm having both healthcare and retail experiences whilst hiring an investment banker to cooperate with our team in both the US and Europe to complete the project within the tight deadline. As a small multinational team, one lawyer in the US and one in Switzerland, Sonova legal took on a unique role in this transaction.