GN Danavox points the way

In June 1990, Madsen Electronics was acquired by GN Danavox (GND) and became part of GN Great Nordic, the Danish-based technology group founded in 1869.

Significantly, the acquisition brought a manufacturer of hearing instruments together with a manufacturer of diagnostic equipment. And this happened fortuitously at a time when computerization was starting to have a major impact on the hearing industry.

The synergies were not long in coming

GND was a prime mover behind HIMSA (the Hearing Instrument Manufacturers' Software Association), which was developing NOAH, a common software platform for the programming of hearing aids.

The contract for the hardware interface was won by Madsen and, at the UHA meeting which followed in October 1993, the HI-PRO interface box was presented to the hearing industry for the first time. Manufactured according to HIMSA’s specifications, this little box has by now found its way into just about every H.I. dispenser’s shop or clinic in the world – more than 35,000 units so far.

Moreover, the NOAH/HI-PRO standard has been adopted by most manufacturers in the industry and blazed a trail for both digital hearing instruments and for computerized fitting and programming.

The industry standard for objective H.I. fitting and verification

Foreseeing the trend towards computerization, two years of intensive market research and product development by a joint Madsen/Danavox task force gave birth in 1995 to the Aurical. This PC-based system runs under NOAH and combines audiometry with H.I. fitting, testing and programming.

Reorganization and consolidation

The 1990s saw a number of major trends in the hearing industry with expressions like “digital” and “consolidation” becoming buzzwords. The decade also saw a complete reorganization of Madsen’s activities in North America. The plant in Toronto was closed down and all manufacturing and R&D transferred to Denmark. In 1992, the sales and service office was transferred to the premises of GN Danavox Inc. in Minneapolis.

In Denmark, Rexton Danplex took over Rastronics in 1991 after that company had struck a major deal to supply REM equipment to Starkey in the U.S. The expanded company went on to develop a PC-based audiometry and fitting system called UNITY for Siemens and a similar system, the PFS 6000, for Starkey. In 1997, H.I. activities were discontinued and Danplex began to focus exclusively on OEM activities – the following year saw another deal, this time with MedRx for the manufacture of the Otowizard.

ICS Medical continued to grow launching CHARTR, a Windows-based balance and/or evoked potential test system, and moving into spacious new premises in Schaumburg, Illinois, in 1999.

Another significant development had been the purchase in 1992 of a 50% share in Technodata by GN Danavox. Renamed AuditData, the software development company was the brainchild of Claus Petersen and specialized in hospital-based audiologic software. This was another step towards promoting computerization in audiology.

Driving towards growth

The appointment of Michael Brock as President of Madsen Electronics in the summer of 1997 signaled the start of a new era not just for the “audiologic equipment division” of GND in particular, but for the world of audiologic and balance assessment in general.

Realizing how fragmented the market for audiologic equipment was, Brock decided to do something about it. Rationalization and growth had to be the answer.

Fortunately, the timing was good – the marketplace was rapidly being “computerized” and favored manufacturers whose products fitted into practices where PCs were being used to fit hearing instruments.

With Aurical and HI-PRO sales picking up, the company was in an ideal position for expansion. And the next few years saw remarkable organic growth of around 18% per year.

Aurical was more than innovation, it was a revolution

The Aurical didn’t just provide a PC interface – and there were plenty of customers who baulked at using a keyboard or mouse for finding thresholds – it combined four functions in one box. Together with a laptop PC, the entire system could be packed into one rolling case and transported anywhere.

Aurical has become the gold standard

When the world’s largest audiology chain, Amplifon of Italy with operations in 11 countries, purchased 1,500 complete systems, the stage was set for unparalleled growth.

With more than 10,000 systems now in use around the world, Aurical has led the way for integrating computers into the process by which patients are tested and fitted with hearing instruments.

The birth of a new powerhouse in the hearing healthcare industry

The 1990s not only saw the increasing penetration of computers and software, but also marked a clear trend in the hearing healthcare industry towards consolidation.

In 1999, this trend came very close to home when GND merged with ReSound Corp. to form GN ReSound (GNR), a new industry powerhouse. Later that year, Madsen was likewise strengthened by the acquisition of Danplex thus becoming, at a stroke, the world’s largest manufacturer of audiologic equipment.