Portobello Capital has acquired around 80% of Legálitas, the legal assistance services firm mainly through the internet, for 120 million euros. The current management team led by Luis del Pozo will remain at the forefront of management, and will retain 20% of the capital.
Founded in 1999 and based in Madrid, Legálitas is a company specialized in advice for families, freelancers and SMEs, with more than 600 employees and 1,000 in-house lawyers and associates with experience in all legal matters, including consumer law, civil and labor, among others.
Legálitas, which exceeded 50 million euros in revenue in 2020, has achieved “a solid growth trajectory reaching an annual increase of 20% in the customer base and more than 25% annually in revenue in its main segment, consolidating its unique business model in the current market framework ”, the firm pointed out in a note. However, in 2019, the last year notified to the commercial register, a loss of 1.3 million euros was noted.
In its strategic plan, the group has proposed to triple the number of customers by 2023 and achieve revenue growth so that they multiply by 2.5 times at the end of that year, up to 100 million euros. For this, the company bases its plan on a strong investment in commercial and advertising activity as well as personnel expenses and call center.
The company provides legal assistance services to more than 200,000 households directly and handles more than one million inquiries per year. Legálitas is, in turn, the reference partner in legal assistance and legal defense insurance for the network of clients of large companies, banks and insurance companies.
“Growth in the digital legal services sector has accelerated over the past year thanks to increased consumer demand for prompt legal advice, on-line and personalized, and also thanks to the growing legal prevention needs of Spanish families and companies ”, they added.
The international firm Tikehau Capital acts as Portobello’s financier and reference partner in this operation. Legálitas will have the financial flexibility to continue with its growth and investment path.
The transaction is subject to the final approval of the General Directorate of Insurance. In this operation, Legálitas has had exclusive advice from Arcano as the coordinating bank of the process and with Uría as its legal advisor, while Portobello, for its part, has had Natixis Partners as financial advisor, Simon-Kucher as commercial advisor, KPMG as advisor to due diligence and Jones Day as legal advisor.