hearX Group, Eargo merge to form LXE Hearing

Hearing health pioneers Eargo and hearX, maker of Lexie Hearing aids, have completed their merger, resulting in the creation of a combined company called LXE Hearing. The hearX Group is a HAVAÍC Fund 1 and Fund 2 portfolio company.

Backed by an additional US$100 million investment from Patient Square Capital, the deal creates a new hearing health company. It is the first notable combination for the over-the-counter (OTC) hearing aid market since the FDA established the regulatory category in 2022. 

LXE Hearing will operate as one company with its two established consumer hearing aid brands, Eargo and Lexie Hearing. With a collective 25 years of experience as hearing health innovators, LXE Hearing is looking to set a new standard for the industry that marries Eargo’s and Lexie’s award-winning credentials in design, device features, sound technology and mobile platforms–against the background of the company’s customer-first ethos.

hearX CEO and co-founder Nic Klopper will serve as CEO for LXE Hearing, with Eargo’s COO and interim CEO Bill Brownie assuming the role of COO. 

“The merger between Lexie and Eargo is founded on our shared mission to create hearing health solutions for everyone, everywhere,” said Klopper. “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 revolutionise hearing aids and hearing health.” 

Eargo is recognised as a pioneer in direct-to-consumer hearing aids in the U.S., leading the industry with its highly coveted “virtually invisible” design.

With nearly a decade of success in digital hearing detection and diagnostics, hearX established its hearing aid division, Lexie Hearing, in 2020 and quickly established the #1 OTC hearing aid brand in the U.S. In 2023, the company was named among TIME 100’s Most Influential Companies globally.

“hearX and Lexie Hearing are a natural complement to Eargo,” said Brownie. “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.” 

Patient Square Capital, a dedicated healthcare investment firm that invests in high-quality, growth-oriented healthcare companies, is backing the deal with an additional US$100 million investment, reflecting investor confidence in the direct-to-patient hearing market, which continues to upend the traditional prescription model.