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 vertically integrated audiology leader and enables a sharper focus on technology innovation, enterprise, gaming, and audio/video peripherals.

• The board and management unanimously agreed to the deal after evaluating unsolicited offers, citing financial and strategic attractiveness, high deal certainty, and long-term value creation.

• GN will retain approximately 16% ownership in Amplifon post-closing and gain a board seat, allowing participation in future value creation.

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

Financial terms and conditions

• Total consideration is DKK 17 billion, comprising DKK 12.6 billion in cash and 56 million Amplifon shares valued at DKK 4.4 billion.

• GN's Hearing business generated DKK 7,214 million revenue and DKK 1,185 million pro-forma EBITDA for FY 2025.

• Initial proceeds will exceed current net interest-bearing debt, strengthening the balance sheet and enabling investments and shareholder returns.

• Lock-up period for Amplifon shares is standard, with intention to reduce the stake over time responsibly.

Synergies and expected cost savings

• Previous integration efforts yielded DKK 600 million in synergies, mainly from supply chain and R&D 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 is expected to drive innovation, efficiency, and long-term value.