LegalZoom.com to hold IPO, raising cash to expand

GLENDALE, Calif.

LegalZoom.com expects to raise about $120 million from its initial public offering, the online legal services company said Friday, part of its effort to expand and possibly buy new companies.

The company did not give a date or give a price for the shares. The estimate of $120 million in proceeds could change depending on how much interest there is in the company's stock.

LegalZoom.com offers online legal service, like providing documents that can be tailored to the needs of small businesses and individuals. The company said it will use money from the offering for general corporate purposes, and to invest in its technology and infrastructure.

The company also said it might use some of the money to buy new technology or other firms.

Last year, the company reported $156.1 million in revenue, up from $120.8 million in the prior year period.

LegalZoom.com Inc. reported net income of $4.7 million, or 13 cents per share, compared to a net loss of $8.1 million, or 28 cents per share, during the same period a year before.

The company was formed in 1999. The offering is being underwritten by Morgan Stanley, BfoA Merrill Lynch, Stifel Nicolaus Weisel, RBC Capital Markets, William Blair and Montgomery & Co.