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This article first appeared on GuruFocus.

Amplifon (AMFPY) has agreed to acquire the hearing-aid business of GN Store Nord (GNNDY) in a transaction valued at 17 billion Danish kroner, or about $2.6 billion, marking a move that could reshape the competitive dynamics of the hearing-care industry. Under the agreement announced Monday, Amplifon will pay 12.6 billion kroner in cash and issue 56 million shares to GN Store Nord. The announcement triggered a sharp market reaction, sending GN Store Nord shares up as much as 42%, the largest jump on record, while Amplifon declined as much as 10%.

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The acquisition could significantly expand the scale of the Milan-based company's hearing-aid operations as the sector begins to draw interest from larger industry players such as EssilorLuxottica. Amplifon said the combined business could generate about 3.3 billion in revenue and operate in more than 100 countries, potentially strengthening its position in the global hearing-care market. The company described the transaction as the most transformative acquisition in its 75-year history.

Amplifon also expects the integration to generate net EBITDA benefits of 60 million to 80 million by the end of 2029, while estimating integration costs of about 80 million over the next two to three years. The deal is expected to close by the end of this year, subject to regulatory approvals. GN Store Nord currently holds roughly 8% of the global hearing-aid market, making it the smallest among Europe's three major manufacturers alongside Sonova and Demant.

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