Portobello Capital is pushing back the planned sale process for Legálitas, the Madrid-based legal-services platform, after prospective purchasers raised concerns about the potential for artificial intelligence to unsettle the market, according to people familiar with the situation.
Portobello began engaging with private equity funds earlier in the year over the disposition of its 76% stake in Legálitas and had been aiming to receive binding bids by next month, the people said. Those timelines will be extended as the seller works to make a case that Legálitas’ underlying business model is insulated from AI-driven competition while continuing to grow.
Legálitas provides subscription-based legal services, charging fixed monthly fees that start at 29.90. Its customer base is focused on individuals and small businesses, which access services via online channels and call centers. The firm relies on teams of lawyers to respond to client queries across its service channels.
In an effort to convert nonpaying users into subscribers, Leg E1litas introduced an AI agent last year. The tool is oriented toward end users rather than corporate clients and generates answers by drawing on the company E2 80 99s archive of past inquiries.
Portobello acquired the majority stake in 2021 in a transaction that placed a valuation on Legálitas of about 120 million. Company executives and minority investors retain the remaining 24% ownership.
The delay reflects buyer skepticism about how quickly AI capabilities could alter market economics for subscription legal services and their role in client acquisition and servicing. Portobello E2 80 99s decision to extend the timetable will give the firm additional runway to present evidence that Legálitas can defend its revenue streams and continue to expand its customer base despite technological shifts.
At this stage, the firm will continue discussions with interested funds while preparing materials and arguments aimed at addressing AI-related risk concerns raised by potential acquirers. The precise new timing for bid submission was not disclosed by the people.
The situation leaves the planned sale open-ended as both seller and potential buyers reassess the implications of AI on product economics, customer conversion strategies and the role of lawyer-led service delivery in a subscription model.