Here's Why Beauty Salon Regis Shares Are Surging Today
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.
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