Eargo Completes Merger with hearX, Creating LXE Hearing

Eargo has successfully merged with hearX, a strategic move resulting in the formation of a new entity called LXE Hearing. The merger, advised by Ropes & Gray, combines the strengths of Eargo and hearX (maker of Lexie hearing aids) to create a new force in the over-the-counter hearing aid industry. Announced on March 31, this transaction represents a significant development in the market following the FDA's establishment of an OTC regulatory category in 2022. Notably, Patient Square Capital has reinforced this merger with a $100 million investment, a clear indication of confidence in the combined company’s prospects. LXE Hearing will leverage the established consumer brands of Eargo and Lexie Hearing under one operational umbrella, solidifying its position in the hearing health market. Patient Square Capital, a dedicated health care investment firm, supports this venture with its considerable financial resources, highlighted by its management of $12 billion in assets as of December 31, 2024. Key individuals from Ropes & Gray’s team provided specialized legal advice across various domains including private equity, mergers and acquisitions, tax, executive compensation, and intellectual property to ensure the merger's success.