Regis (RGS) shares surged nearly 9% in recent Thursday trading after the company said it acquired Alline Salon Group, its largest franchisee, in a cash-and-stock deal valued at $22 million in initial consideration.

Alline Salon may also earn an additional $3 million, in $1 million increments, through earnout payments over the next three years, Regis said.

Of the initial consideration, $19 million was paid in cash, with the remaining $3 million delivered in Regis' common stock.

The $19 million cash portion was funded with $15 million from an upsized credit agreement and $4 million from available cash, Regis added.

Price: 23.89, Change: +1.94, Percent Change: +8.84