LegalZoom, the legal services giant, has landed a $500 million secondary investment led by Francisco Partners and GPI Capital, according to apress releaseissued Tuesday.
BloombergAxiosandLegalTech Newsalso have coverage.
LegalZoom delivers a truly compelling value proposition and is well-recognized as a market pioneer, says Khai Ha, partner at GPI Capital, said in the release.
Other investors include Franklin Templeton and Neuberger Berman.
Were excited to partner with an impressive set of new growth equity investors that will support our efforts to democratize law, LegalZoom CEO John Suh tells LegalTechNews.
Axios reports that the deal values LegalZoom at $2 billion, indicating that the company is worth nearly five times what it was when European private equity company Permira paid $200 million for a controlling stake in 2014. The same outlet said LegalZooms revenue from subscription services has grown from 30 percent of revenue to 50 percent since Permiras involvement.
According to Bloomberg, the new round of funding is intended to give current investors liquidity and work with new long-term investors. Suh said the company could offer an IPO in the future.
Previously, LegalZoom called off plans for an IPO after Permira acquired its control stake. Permira will continue to be LegalZooms largest shareholder.
Since Permiras investment, LegalZoom expanded in 2015 into the United Kingdom, where it generates $20 million in revenue a year according to Bloomberg, and ended a $10.5 millionantitrust disputewith the North Carolina State Bar.
Suh tells Bloomberg that the Glendale, California-based company plans to make inroads in Australia and other parts of Europe.
Early investor Bryant Stibel will keep its entire ownership stake in the company, while Kleiner Perkins and Institutional Venture Partners will retain the majority of their ownership stakes, the release says.
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