Eargo, Hearx and Lexie Merge to form LXE Hearing, with $100 Million Investment from Patient Square Capital

Two long-time leaders in over-the-counter (OTC) hearing aids, Eargo and hearX (owner of Lexie Hearing), are combining forces to create LXE Hearing with the help of $100 million in new funding from healthcare investment firm Patient Square Capital.

The formation of LXE Hearing marks the most notable consolidation in the OTC hearing aid market since the FDA established regulations allowing non-prescription hearing aid sales in 2022. With 25 years of combined experience in the hearing healthcare field, LXE Hearing will market Lexie Hearing and Eargo as two distinct brands.

LXE Hearing expects the $100 million in funding to accelerate innovation, improve accessibility, and streamline customer experiences across both brands. According to LXE, clinical rigor continues to be the combined company's focus, with more than 52 peer-reviewed studies supporting the technologies behind both brands, and 68 patents reinforcing their product innovation.

Leadership for LXE Hearing will consist of Nic Klopper, CEO and co-founder of hearX, stepping in as CEO, while Bill Brownie, COO and interim CEO of Eargo, will serve as COO. The company is also supported by the talents of other hearing industry veterans, including CFO Emanuel Gerson, Chief Strategy Officer Seline Van der Wat, Chief Communication Officer Brian Maguire, and CTO Tim Trine.

"The merger between Lexie and Eargo is founded on our shared mission to create hearing health solutions for everyone, everywhere," stated Klopper in a press release. "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 revolutionize hearing aids and hearing health."

Established in San Jose, California, in 2010, Eargo is one of the longest-established players in the DTC hearing aid market. They have a reputation for making extremely tiny, reliable, wireless, in-ear hearing aids like Eargo 7 at the premium end of OTC pricing ($2,149 per set). Early last year, the company introduced the less expensive in-ear Eargo SE ($1,549) and the earbud-style LINK by Eargo ($749).

Patient Square Capital became the majority shareholder of Eargo in November 2022 when it assumed over two-thirds of the company's shares after Eargo struggled financially. This was at least partially due to Eargo's $34.4 million settlement to resolve allegations related to claims for reimbursement to the Federal Employees Health Benefits Program (FEHBP), which resulted in it being suspended from that program. Patient Square became Eargo's sole owner in November 2023.

Lexie hearing aids were also among the first OTC hearing aids to hit the market when the FDA created the category in October 2022. Lexie Hearing is owned by an American subsidiary of the hearX Group, which is based in Pretoria, South Africa. Founded in 2015, Lexie sells behind-the-ear type B1 and B2 Plus Powered by Bose ($649 and $899) and Lexie Lumen ($499) OTC hearing aids. HearAdvisor rates the Lexie B2 Plus as one of the top OTC hearing aids available.

Importantly, both companies have invested substantial resources in telecare services and support for consumers purchasing their hearing aids—which can be key to success and satisfaction with amplification.

“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.”

The involvement of Patient Square Capital underscores growing investor interest in DTC hearing care models that offer alternatives to traditional audiology pathways.

“The vast majority of American adults who suffer from hearing loss currently do not use hearing aids given historical barriers to access and shortcomings with traditional offerings," stated Justin Sabet-Peyman, Partner at Patient Square. “We believe that LXE Hearing's innovative technology and unique go-to-market approach, enhanced by the synergies of the business combination, will provide unprecedented solutions to patients in need of hearing care.”

By blending Eargo’s design-led innovation with Lexie’s scalable digital solutions—and both companies' commitments to telecare support—LXE Hearing is better positioning itself to help bring modern, accessible, and affordable hearing solutions to millions of Americans with hearing loss.