LegalZoom acquires Formation Nation, terms undisclosed

LegalZoom (LZ) announced it has acquired Formation Nation. With this acquisition, LegalZoom will benefit from the immediate onboarding of over 140 small business service experts. The Formation Nation transaction closed on February 10 and, inclusive of synergies, is expected to positively contribute to adjusted EBITDA and be accretive to adjusted EPS in the first year of the acquisition. Under the terms of the transaction, LegalZoom acquired Formation Nation for $49.3M in cash upfront and approximately 2.2M restricted shares of the company’s common stock, which are subject to lockup and voting agreements. An additional $15.4M in cash is subject to a one-year holdback and customary adjustments.