European buyout firm EQT Partners has agreed to buy the hearing aid division of German conglomerate Siemens, marking a rare private equity deal in the medical device sector as strong corporate interest in healthcare companies drives up prices.

The Stockholm-based private equity firm has agreed to buy Siemens Audiology Solutions for an enterprise value of €2.15 billion plus an earn-out component - a provision which means the seller can receive future compensation based on certain financial benchmarks, according to a statement from Siemens.