RTTNews | Sep 23, 2021 10:50AM EDT

10:49 Thursday, September 23, 2021 (RTTNews.com) - Shares of Japanese holistic healthcare services company MEDIROM Healthcare Technologies Inc. (MRM) are surging nearly 100% Thursday morning after the company announced acquisition of ZACC Kabushiki Kaisha, a Japanese hair salon operator, for about $3.36 million to be paid in cash.

ZACC owns and operates three luxury hair salon brands, ZACC vie, ZACC raffine, and Zacc ginza.

MEDIROM has entered into a share transfer agreement with the shareholders of ZACC to acquire all the shares through a two-stage acquisition.

The first stage of the acquisition is scheduled to close on October 1 after 60% ZACC shares are transferred. The second stage will be concluded on January 1, 2022 when the remaining 40% shares will be transferred.

About $627,000 was initially paid to ZACC on August 31, 2021 and nearly $1.4 million and about $1.34 million are expected to be paid on October 1, 2021 and January 1, 2022, respectively.

"We aim to combine mutual services such as high-end beauty services and relaxation services by leveraging the high brand power of ZACC and the Company and to support opening of new ZACC brand salons by sharing the Company's expertise in franchising, employee independence programs, etc." commented MEDIROM Founder and CEO Kouji Eguchi.

MRM is currently at $14.53. It has traded in the range of $5.46- $1980 in the past 52 weeks.

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