LegalZoom tumbles as PE firm slashes stake

LegalZoom.com

07/09/2023 13:27

** LegalZoom.com Inc's  LZ.O  shares tumble 12.5% premarket
to $9.70, about 4-mth low, as online legal services firm's
secondary offering prices
    ** Co announces 14 mln shares, up from 13 mln shares, sold
by existing holder at $10, 9.8% discount to stock's last sale on
Weds
    ** The seller is British private equity firm Permira, which
held 19.8% of LZ (~38 mln shares), per SEC filing
    ** In addition, LZ to repurchase ~4.7 mln shares from
Permira for approx $45.1 mln ($9.55 purchase price)
    ** Permira also to sell ~2.1 mln shares to existing LZ
stockholder Technology Crossover Ventures for approx $20 mln
    ** Through Weds close, LZ shares up 43% YTD
    ** JP Morgan leading the secondary offering

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))