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LegalZoom Files For IPO Of Up To $120 Million
Online legal services company LegalZoom filed for an initial public offering on Friday with the SEC that could raise up to $120 million.
LegalZoom generated revenue of $156.1 million in 2011, which was up 29.2% from $120.8 million in 2010, according to its S-1 filing. The Glendale, Calif. company posted a net income of $12.1 million in 2011, up from a net loss of $4.0 million in 2010.
Founded in 1999, LegalZoom provides legal services to small businesses and consumers, including interactive legal documents that customers can tailor to their specific geography. The company also offers legal advice via subscription legal plans with attorneys, as well as subscription registered agent services. The company had 228,000 subscribers as of the end of 2011, up from 116,000 in the year-ago period.
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The company’s investors include Polaris Venture Partners with a 35.1% stake, Institutional Venture Partners with a 14.7% stake, Kleiner Perkins Caufield & Byers with a 6.4% stake and cofounder, chairman and former CEO Brian Liu with 8.6%. The LegalZoom IPO is a big win for Polaris, which has the largest stake in the company. Polaris last year closed a $375 million fund, which was much smaller than its previous $1 billion 2006 fund.
Perhaps to be expected: since 2009 there have been seven lawsuits filed against LegalZoom in California, Missouri, Alabama, Ohio, Alabama, Arkansas and South Carolina for various claims. Competitors in online legal documents include BizFilings, RocketLawyer, and The Company Corporation.
LegalZoom plans to list on the New York Stock Exchange under the ticker “LGZ.”Morgan Stanley and Bank of America Merrill Lynch are underwriters. |
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