LogMeIn Acquires LastPass for $110 Million

Software-as-a-service provider LogMeIn has acquired LastPass for $110 million in cash.

The acquisition of the single sign-on and password management service provider is expected to help LogMeIn to continue its growth in the identity and access management market, according to the announcement. 

The deal is expected to close in the coming weeks, with the possibility of up to an additional $15 million in cash to be paid to equity holders and key employees of LastPass “upon achievement of certain milestone and retention targets over the two-year period following the close of the transaction,” the deal stated.

“LastPass has a great business, a beloved and award-winning product, millions of loyal users and thousands of great business customers—they are synonymous with the category,” said Michael Simon, LogMeIn’s chairman and CEO, in a statement. “We believe this transaction instantly gives us a market-leading position in password management, while also providing a highly favorable foundation for delivering the next generation of identity and access management solutions to individuals, teams and companies.”

With the number of different cloud, web and mobile apps being used in enterprise environments, LogMeIn is looking to capitalize on the confusion within many companies by offering a product and go-to-market strategy to help secure sensitive information. The company said it will utilize LastPass’ solutions to augment its identity portfolio and offer inroads for future market leadership.

For the time being, LastPass’s product line will continue to be supported, but LogMeIn said it plans to converge the company’s solutions with that of Meldium (which was acquired last year) to eventually create a single identity management offering based on the LastPass service and brand.

“LogMeIn and LastPass share a great common vision on reshaping identity and access management in ways that not only increase productivity but also improve security for individuals and companies alike,” said Joe Siegrist, CEO of LastPass. “The striking commonality between our businesses, our products and cultural DNA make this a great fit for both teams, and we believe a great win for our customers.”