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Here's Why Beauty Salon Regis Shares Are Surging Today

Benzinga · 06/10/2022 07:02
  • Regis Corp (NYSE:RGS) has partnered with Zenoti, a technology provider for beauty, wellness, and fitness businesses.
  • As part of the partnership, Regis agreed to sell its proprietary salon management system, Opensalon Pro, to Zenoti.
  • Zenoti will become the sole salon technology platform for all Regis brands.
  • Regis will receive up to $39 million in cash consideration as part of the transaction, of which a portion will be paid at closing and the remainder to be earned as salons transition to the Zenoti platform over time.
  • Zenoti will help Regis deliver a modern, digital experience to more than three million salon guests monthly.
  • Regis noted the cash consideration represents a significant return on the investment made in the OSP platform.
  • The transaction is expected to close by the end of June 2022.
  • Price Action: RGS shares are trading higher by 78.86% at $1.00 in premarket on the last check Friday.