GN Store Nord (GN) M&A announcement summary

Deal rationale and strategic fit

• Sale of the Hearing business to Amplifon for DKK 17 billion creates a global leader in audiology and enables a sharper focus on technology innovation in enterprise, gaming, and audio/video peripherals.

• The transaction followed unsolicited offers, with Amplifon's proposal deemed most compelling after thorough evaluation.

• The deal transforms the seller into a focused technology company, unlocking balance sheet strength for future investments and shareholder returns.

• Amplifon aims to preserve and enhance the acquired business's unique identity and strengths.

• Board and executive management unanimously approved the deal, considering it in the best long-term interest of shareholders and the business.

Financial terms and conditions

• Total consideration is DKK 17 billion, including DKK 12.6 billion in cash and 56 million Amplifon shares valued at DKK 4.4 billion based on recent share price.

• Seller will retain about 16% ownership in Amplifon and receive a board seat post-closing, subject to lock-up.

• Hearing business generated DKK 7,214 million revenue and DKK 1,185 million pro-forma EBITDA in 2025.

• Initial proceeds of DKK 12.6 billion will exceed current net interest-bearing debt of DKK 8.6 billion.

• The transaction is taxable, but specific tax liabilities are not disclosed.

Synergies and expected cost savings

• Previous integration efforts yielded DKK 600 million in synergies, mainly from supply chain and operations improvements.

• The combination leverages over 700 R&D professionals and 2,800 patents, enhancing innovation and clinical expertise.

• Integration of R&D, manufacturing, and commercial networks to drive innovation and efficiency.

• Combined entity expected to deliver comprehensive solutions and create significant long-term value for stakeholders.

• Healthy synergies remain across Enterprise, Gaming, and FalCom, especially in supply chain and some R&D.