Summary by Moomoo AI
MEDIROM Healthcare Technologies has entered into agreements to acquire Japan Gene Medicine Corporation (JGMC), a provider of prenatal genetic testing services. The initial deal involves purchasing 70% stake for ¥2 billion, with an option to acquire the remaining 30% by June 2027. The acquisition price is based on 6x adjusted EBITDA valuation.The transaction includes restructuring of JGMC's service agreements with related companies to ensure most economic benefits accrue to JGMC. The deal is subject to key conditions including securing bank financing for over 70% of the purchase price and satisfactory revision of subcontracted testing agreements. The seller will continue supporting JGMC's management for five years post-closing.MEDIROM sees significant growth potential in Japan's prenatal testing market, where only 7.2% of pregnant women used such services in 2016. The acquisition aligns with MEDIROM's strategy to become a comprehensive healthcare provider and creates synergies with its Re.Ra.Ku wellness business, targeting women in their 20s-40s. The deal is expected to strengthen MEDIROM's HealthTech portfolio alongside its existing Lav, MOTHER Bracelet, and REMONY solutions.
