LegalZoom Announces Secondary Offering of Shares of Common Stock and Concurrent Stock Repurchase

GLENDALE, Calif., Sept. 06, 2023 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ) announced today that a selling stockholder of LegalZoom (the “Selling Stockholder”) intends to offer 13,000,000 shares of LegalZoom’s common stock in an underwritten public offering (the “Secondary Offering”). The Selling Stockholder also intends to grant the underwriters a 30-day option to purchase up to an additional 1,950,000 shares of common stock.

LegalZoom is not offering any shares of its common stock in the Secondary Offering and will not receive any proceeds from the sale of shares of common stock in the Secondary Offering.

J.P. Morgan Securities LLC is acting as sole book-running manager for the Secondary Offering.

LegalZoom has filed a registration statement on Form S-3 relating to the Secondary Offering (including a prospectus) with the Securities and Exchange Commission (the “SEC”) that has become effective. The Secondary Offering will be made only by means of a prospectus supplement and the accompanying prospectus. Before you invest, you should read the prospectus supplement, the accompanying prospectus, the documents incorporated by reference therein and any other documents that LegalZoom may file with the SEC for more complete information about LegalZoom and the Secondary Offering. A copy of the preliminary prospectus supplement and accompanying prospectus relating to the Secondary Offering may be obtained, when available, by using EDGAR on the SEC website at www.sec.gov or by contacting: J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at [phone] or by email at [e-mail].

In addition, on September 5, 2023, LegalZoom entered into a stock purchase agreement with the Selling Stockholder pursuant to which LegalZoom intends to repurchase a number of shares of its common stock for an aggregate purchase price of approximately $45.1 million directly from the Selling Stockholder in a private, non-underwritten transaction (the “Stock Repurchase”) at a price per share equal to the price to be paid by the underwriters to the Selling Stockholder in the Secondary Offering. The Stock Repurchase is expected to be funded from cash on hand and will be part of LegalZoom’s existing share repurchase program. The Stock Repurchase is subject to the completion of the Secondary Offering and is expected to close concurrently with the Secondary Offering. The completion of the Secondary Offering is not contingent upon the completion of the Stock Repurchase.