LegalZoom, a Glendale, Calif.-based provider of legal solutions for small businesses and families, received a $500m secondary investment.
The transaction was led by Francisco Partners and GPI Capital, with participation from one or more Franklin Templeton Investments funds and funds managed by Neuberger Berman Investment Advisers.
Following the close of the transaction, existing investors will retain meaningful stakes in the company. Global private equity firm Permira will remain the largest shareholder, Bryant Stibel will retain its entire ownership stake and Kleiner Perkins and Institutional Venture Partners (IVP) will retain the majority of their ownership stakes. IVP and Kleiner Perkins invested in LegalZoom in 2011; the Permira funds and Bryant Stibel invested in 2014.
As part of their firms’ investment, Dipanjan “DJ” Deb and Neil Tolaney from Francisco Partners and Khai Ha from GPI Capital will join the company’s board of directors. Jeff Stibel of Bryant Stibel, who has served on the LegalZoom Board of Directors since 2015, will assume the role of Chairman.
LegalZoom intends to use the proceeds to continue to accelerate its growth.
Led by CEO John Suh, the company provides small business owners and families with a platform of people and technology that gives access to legal solutions be more informed and secure legal decisions.
LegalZoom, which services customers in the US and the UK and is now over 1,200 employees strong, is launching new services while expanding into new channels and territories.
In recent years, they have expanded into the United Kingdom and grown subscriptions to more than 50% of U.S. revenue.