The Dunedin Hearing Clinic, established in 1960, employs eight people and operates five clinics throughout Otago.
Under the deal, Anthony Rowcroft, the principal audiologist and a director of the Dunedin Hearing Clinic, would retain a minority shareholding in a new entity, Bay Audiology South Ltd.
He would oversee the new company's audiology businesses in the south of the South Island.
Mr Rowcroft said his father Paul was close to retirement and they were looking at options for future succession and planning.
They had considered several offers for the business but he said the deal offered by Bay Audiology felt right.
It allowed him to remain an equity partner, and gave him confidence in the way the clinics would be run and how staff would be looked after, he said.
"We favoured that rather than a full-scale takeover, which was one of the offers."
He said it was business as usual, but the new entity would be able to use Abano's back office for administrative support and marketing.
Clinics in Queenstown and Cromwell would be rebranded Bay Audiology South, while the Dunedin and Mosgiel clinics would remain Dunedin Hearing Clinics.
Mr Rowcroft will remain a clinician and will be a director of Bay Audiology South.
The executive chairman of Bay Audiology, Peter Hutson, said the recent acquisition of Access Audiology in Auckland, along with Dunedin Hearing, would add more than $3.5 million in annualised revenue.
Abano has also added to its dental business with the acquisition of two Auckland businesses, incorporated in its new entity, Lumino The Dentists, taking the number of the group's practices to 38.
