February 28, 2022
Intricon Enters into Agreement to be Acquired by an Affiliate of Altaris Capital Partners for $241 Million
On February 28, Intricon Corporation announced that it had entered into a definitive agreement to be acquired by an affiliate of Altaris Capital Partners, an investment firm focused exclusively on the healthcare industry. Altaris proposes to acquire all outstanding shares of Intricon stock at a price of $24.25 per share, a 39% premium to Intricon’s closing price on February 25, 2022, which equates to a compelling equity valuation of approximately $241 million. The transaction will enable the company to accelerate its advancement plans as a joint development manufacturer (JDM) with deep capabilities in micromedical technology across a broad range of high-growth markets. The acquisition received unanimous approval by the Intricon Board of Directors.
Scott Longval, Intricon CEO, credits the Intricon team for establishing the company as a premier partner of choice for medical device companies that incorporate advanced technology from Intricon into their products. He adds that the transaction ushers in the next chapter of the company and that Altaris will help further Intricon’s mission: To work side-by-side with customers as their JDM in micromedical technology, supporting customer teams from the earliest stages of ideas through final production of medical devices.
The merger agreement is also subject to a “go shop” period whereby Intricon may solicit superior proposals from third parties for a period of 35 days continuing through April 3, 2022, and in certain cases for a period of 45 days continuing through April 13, 2022. Subject to shareholder approval, the transaction is expected to close in the second quarter of 2022, following customary regulatory approval. Upon completion of the acquisition by Altaris, Intricon will become a private company.
For more information about the agreement, please read the official news release here and see media coverage about the news here.
Clinical Trial Results
June 15, 2022
Intricon Sentibo technology is first psychoacoustic-based hearing aid with audio that can be self-fit by its user, setting new standards for the hearing aid industry
ARDEN HILLS, Minn. (June 15, 2022) – Intricon, a micromedical technology company that makes interventional, implantable, and body-worn medical devices, has announced the results of a clinical trial studying its new Sentibo self-fitting hearing aid technology. The study compared the sound quality, fitting process, and overall benefits of hearing aids that were self-programmed using the Sentibo mobile app to hearing aids programmed by a hearing care professional. The study concluded users were, on average, more satisfied with the self-fitting hearing aid. Intricon commissioned the study to prove satisfaction, quality, and safety of its proprietary self-fitting technology, in time for the FDA decision that will allow hearing aids to be sold over the counter (OTC).
The Sentibo self-fit method, which uses a proprietary psychoacoustic audibility model, is the first to not rely on the National Acoustic Laboratory (NAL-NL2) prescriptive fitting method. Audio is self-fit by the wearer.
“We commissioned the study to make sure people will have an equal if not better experience with over-the-counter hearing aids than traditional prescription hearing aids. At the same time, we wanted to evolve the industry and its traditional fitting standards that have existed for years,” said Scott Longval, CEO of Intricon. “We view OTC hearing aids as an opportunity for the industry to take a major step forward, and we want to be a leader in taking it into the future.”
Intricon studied the NAL-NL2 audibility model, common in the industry since 2011, to identify opportunities for new advancements, such as using a psychoacoustic audibility model during self-fitting for people with varying fidelity expectations to identify their unique needs, with a wider dynamic range of sound. Because psychoacoustic audibility focuses on the user’s perception of sound, it helps everyone hear at a level that is optimized for their unique perception to not miss certain sounds, regardless of their hearing sensitivity.
“Sounds have never been combined in this way before,” explains Longval. “Sentibo is truly precedent-setting in all aspects of the hearing aid customer experience.”
Longval adds that Intricon’s goal in developing technology for OTC hearing aids is to improve access and affordability for the 38 million people in the U.S. with mild to moderate hearing loss. Intricon provides components and technology for hearing aids that are professionally fit and self-fit, such as the commercially marketed Lumen 155 hearing aid used in the study.
“For 45 years, Intricon advancements have been focused on expanding the hearing aid market and giving people more options,” said Longval.
About Intricon Corporation
Intricon is a Joint Development Manufacturer that integrates micromedical components and assemblies to advance technology across a range of medical device platforms for global customers. Intricon approaches each engagement with an all-in commitment, working with customers every step of the way, from the earliest idea stages to ongoing production, in order to advance program performance and deliver results. With a focus on key device platforms, Intricon helps advance clinical outcomes by always looking ahead with proactive support and resources through integration of its core competencies. Intricon has facilities in the United States, Asia, and Europe.
Intricon Featured on Medical Alley Podcast
Founder Mark Gorder and CEO Scott Longval join Medical Alley for a discussion on Intricon’s history and future
Intricon founder Mark Gorder and president and CEO Scott Longval joined Frank Jaskulki, vice president of intelligence at Medical Alley, for a podcasted discussion on Intricon’s 45-year legacy in the micromedical industry and the future of the company.
Medical Alley is The Global Epicenter of Health Innovation and Care®, a place that healthcare leaders call home. The Medical Alley Association is a community of these leaders, who represent the world’s highest concentration of top innovation and healthcare companies. Minnesota, where Intricon is based, is at the heart of Medical Alley. The Medical Alley region is home to the nation’s largest private health insurer and more than 1,000 med device and healthcare companies, employing millions of people worldwide. Medical Alley has history, as the birthplace of implantable medical technology, collaborative care delivery, and innovative health plan models. The Smithsonian has recognized six “Great Places of Invention” in the U.S., including only one for healthcare: Medical Alley.
Intricon is a key part of both the history and the future of this ecosystem. The company designs, develops, manufactures, and even packages microminiature components for companies worldwide. It is a pioneer in micromedical med devices.
Hear more about the Intricon story by listening to the Medical Alley podcast here.