SHERIDAN, Wyo., July 15, 2024 (GLOBE NEWSWIRE) -- Registered Agents Inc, one of the leading competitors to LegalZoom, increased its investment in the company by acquiring an additional 82,500 shares for a purchase price of $500,000.
This brings their total investment in LegalZoom to 115,669 shares at a value of nearly $700,000. LegalZoom’s stock dropped nearly 30% on Wednesday, July 10.
Despite industry and market chatter, representatives from Registered Agents Inc are firm that the purchase was an investment move, not a massively underfunded hostile takeover attempt.
“Registered Agents Inc made a strategic investment. We saw what was happening with LegalZoom and felt that the stock was oversold,” said Bryce Myrvang, Chief Legal Counsel for Registered Agents Inc. He emphasized that the recent purchase represents only a 0.5% ownership stake, insufficient to exert influence over LegalZoom’s operations.
LegalZoom is one of the most recognizable brands in the business formation sector, while Registered Agents Inc, a private, family-owned company, holds a significant market share lead over LegalZoom.
Unlike LegalZoom, which requires clients to “opt out” of data sales, Registered Agents Inc does not engage in the selling of client data to third parties or "sharing" to third party "partners.” Some analysts point to this practice—along with the company’s robust customer support services—as an explanation for its out-sized market share.
About Registered Agents Inc:
Registered Agents Inc (RAI) provides comprehensive solutions for registered agent service and business entity maintenance for more than 1 million companies nationwide. With years of experience building network infrastructure and utilizing advanced technology to provide real-time document delivery and intuitive design, RAI delivers premium-level service to every client.
