Regis Partners with Salon Technology Provider Zenoti to Support its 5,000+ locations
10 June 2022 - 6:50AM
Business Wire
Zenoti Will Purchase Regis’ Opensalon®
Pro Salon Management System as Part of the Transaction
Regis Corporation (NYSE: RGS), a leader in the haircare
industry, announces that it has partnered with Zenoti, the leading
technology provider for beauty, wellness, and fitness businesses.
As part of the partnership, Regis today entered into an agreement
which includes the sale of its proprietary salon management system,
Opensalon Pro (“OSP”), to Zenoti. Zenoti will become the sole salon
technology platform for all of Regis’ brands. With this
relationship, Zenoti will help Regis deliver a modern, digital
experience to drive engagement with its three million salon
customers every month. The transaction is expected to close by the
end of June 2022.
“The scale, functionality, and diversity of business models
Zenoti supports is unmatched in the salon industry,” says Matthew
Doctor, Regis Corporation President and CEO. “By designating Zenoti
as our sole salon technology platform, Regis can immediately
deliver a best-in-class salon management platform to our
franchisees and stylists, strengthen our financial position, and
enable the company to fully focus on our core business: haircare
services.”
“This relationship with Zenoti represents a big step forward for
Regis and our franchisees. Not only does the relationship provide
our franchisees with a platform that provides the functionality
they requested, it also helps advance our goals of providing our
franchisees, stylists, and customers the best possible experience,
improving overall operations, and driving business growth through
enhanced data and direct marketing capabilities,” says Doctor.
“We deeply appreciate the efforts and dedication of our team
responsible for the development of the OSP platform,” Doctor
continues, “as well as our franchisees who contributed valuable
insights to aid in the development of OSP. We are grateful that
many will have the opportunity to continue as employees of Zenoti
or in roles at Regis, allowing Regis to further benefit from their
industry expertise.”
“We are looking forward to bringing on many of the OSP team
members at Zenoti and the solutions they have brought to market,”
says Sudheer Koneru, Zenoti Co-founder and CEO. “This will add to
our deep understanding of the specific, niche problems that beauty
and wellness businesses face, and how to solve them with
technology. We have addressed just about every issue within the
market, making us uniquely positioned to immediately support the
Regis organization. The goals are to simplify operations, improve
customer service, drive revenue consistently, and ultimately
support salon growth.”
Regis will receive up to $39 million in cash consideration as
part of the transaction, of which a portion will be paid at
closing, subject to certain holdbacks and the remainder to be
earned as salons transition to the Zenoti platform over time. Cash
consideration represents a significant return on the investment
made in the OSP platform.
About Regis Corporation
Regis Corporation (NYSE:RGS) is leader in the beauty salon
industry. As of March 31, 2022, the Company franchised, owned or
held ownership interests in 5,697 worldwide locations. Regis'
franchised and corporate locations operate under concepts such as
Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice
Haircutters®. Regis maintains an ownership interest in Empire
Education Group in the U.S. For additional information about the
Company, please visit the Investor Information section of the
corporate website at www.regiscorp.com.
About Zenoti
Zenoti powers more than 20,000 beauty, wellness and fitness
business in more than 50 countries, including 80 percent of the
enterprise market globally. Its comprehensive, cloud-based,
mobile-led solution elevates the guest experience, unifies the
brand, and streamlines operations. Zenoti enables users to
seamlessly manage every aspect of running a service business in a
comprehensive mobile solution: online appointment bookings, POS,
CRM, employee management, inventory management, built-in marketing
programs and more. Features include a powerful branded app with
automated payments for a great guest experience, a complete suite
of business tools for marketing and operations, employee training
modules to motivate and retain staff, and cutting-edge solutions
like industry benchmarks, to help the business make better
decisions. To learn more about Zenoti, visit www.zenoti.com.
This press release contains or may contain “forward-looking
statements” within the meaning of the federal securities laws,
including statements concerning anticipated future events and
expectations that are not historical facts. These forward-looking
statements are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. The
forward-looking statements in this document reflect management’s
best judgment at the time they are made, but all such statements
are subject to numerous risks and uncertainties, which could cause
actual results to differ materially from those expressed in or
implied by the statements herein. Such forward-looking statements
are often identified herein by use of words including, but not
limited to, “may,” “believe,” “project,” “forecast,” “expect,”
“estimate,” “anticipate,” and “plan.” In addition, the following
factors could affect the Company’s actual results and cause such
results to differ materially from those expressed in
forward-looking statements. These factors include whether and when
the closing conditions will be satisfied and whether and when the
transaction will close, whether and when the Company will be able
to realize the expected financial results, and how franchisees and
customers will react to the transaction. Additional information
concerning potential factors that could affect future results is
set forth under Item 1A on Form 10-K. We undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
However, your attention is directed to any further disclosures made
in our subsequent annual and periodic reports filed or furnished
with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on
Schedule 14A.
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version on businesswire.com: https://www.businesswire.com/news/home/20220609005926/en/
REGIS CORPORATION: Kersten Zupfer
investorrelations@regiscorp.com
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