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Permira Funds Expected to Acquire More Than $200 Million of LegalZoom Equity

LegalZoom.com, Inc. (“LegalZoom” or the “Company”), the nation's leading provider of online legal solutions for small businesses and families, and Permira, the European private equity firm with global reach, today announced that a company backed by the Permira funds is expected to acquire more than $200 million of the outstanding equity of LegalZoom. The Permira funds aim to support LegalZoom's continuous launch of new products and services that address an ever-widening set of customer needs while making them even easier to use.

Blending the power of people and technology, LegalZoom delivers personalized legal solutions with an unmatched combination of quality, customer care, and value. LegalZoom has helped over two million small businesses and individuals across all 50 states, and has grown to become the most recognized brand in the legal industry.

"LegalZoom is the clear leader in the huge untapped market for small business and family law,” said Dipan Patel, a Principal at Permira. “The Company has strong brand recognition, a unique value proposition and a proven track record. We’ve been impressed by the team’s development of multiple successful subscription products, which, in less than four years, now represent more than 30% of revenue, growing in excess of 35% per year. We are excited to back John Suh and his talented team at LegalZoom as they continue to lead this emerging industry."

"The Permira funds are a fantastic partner for this next chapter of LegalZoom's growth,” said John Suh, CEO of LegalZoom. “They share our passion for creating modern customer-centric legal solutions that help businesses and families save both time and money. They also have an unusual knack for helping industry leaders extend their market leadership."

Given LegalZoom’s rapid innovation and growth, with more products launched in the last six months than in the last six years, the Company has decided to withdraw its Form S-1 filing and remain a private company. The Permira funds’ backing strengthens LegalZoom’s ability to move forward with its significant growth plans, which include potential acquisitions in both the U.S. and abroad.

Under the terms of the transaction, a company backed by the Permira funds is expected to acquire more than $200 million of the outstanding equity of LegalZoom through a tender offer launched December 30, 2013. LegalZoom’s management team will maintain ownership in the Company, as will the Company’s current largest shareholders, which include Polaris Venture Partners, Institutional Venture Partners, and Kleiner Perkins Caufield & Byers. Following the close of the transaction, the company backed by the Permira funds will be LegalZoom’s largest shareholder and have the right to appoint a majority of the Board of Directors of the Company, which will include Brian Ruder, Partner at Permira, and Dipan Patel, Principal at Permira.

The transaction is subject to customary regulatory approvals and closing conditions and is expected to close in the first quarter.

About Permira

Permira is a European private equity firm with global reach. The Permira funds, raised from pension funds and other institutions, make long-term investments in companies with the ambition of transforming their performance and driving sustainable growth. Founded in 1985, the firm advises funds with a total committed capital of close to $30 billion.

Permira established itself in North America in 2002 and today has offices in New York and Menlo Park. The Permira funds have a long track record of successfully investing in technology and digital media companies around the world including Ancestry.com, Odigeo, NDS, Renaissance Learning and Genesys. Since 1997, over 30% of the Permira funds' investments have been in the core sector of Technology, Media & Telecom.

About LegalZoom.com, Inc.

LegalZoom is the nation's leading provider of personalized, affordable online legal solutions for families and small businesses. Founded more than 12 years ago by attorneys with experience at some of the top law firms in the country, LegalZoom has helped over two million Americans become protected with binding legal documents. Although LegalZoom is not a law firm, it can help people access an attorney through its legal plans. The company has offices in Austin, Glendale, and Mountain View. For more information, visit www.legalzoom.com.

Additional Information:

This news release and the description contained herein is neither an offer to purchase nor a solicitation of an offer to sell shares of LegalZoom. Current stockholders of LegalZoom will receive an offer to purchase, a form of letter of transmittal and other documents relating to the tender offer, including an Information Statement from LegalZoom, with respect to the tender offer.


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