Remote access software provider LogMeIn has acquired Meldium, a San Francisco-based startup company that provides identity and access management (IAM), password management and single sign-on (SSO) solutions.

LogMeIn purchased Meldium for approximately $15 million in cash, a portion of which is contingent on performance and retention-based payments expected to be paid over time. The full Meldium team also is expected to join LogMeIn and will remain in San Francisco.

Michael Simon, LogMeIn’s CEO, said he believes the Meldium acquisition immediately bolsters his company’s IT portfolio.

“Small and medium-sized business (SMB) IT has long been a core part of our customer base, and finding new ways to create value for that important audience is a key strategic growth driver for us. As SMBs increasingly shift to the cloud, we want to help IT pros and managed service providers (MSPs) embrace this sometimes daunting evolution,” Simon told MSPmentor. “The Meldium team and technology present a great opportunity for us to expand the offerings we can provide to MSPs, and with that, the new types of services they can offer to their SMB clients. We believe identity management represents a compelling opportunity for both us and MSPs to do just that.“

Simon also noted the Meldium acquisition will enable his company to better address customers’ IT challenges.

“Meldium has created what we believe is one of the most elegant, intuitive SSO solutions on the market today,” he said in a prepared statement. “We believe the addition of Meldium and SSO — together with the identity and cloud app management capabilities introduced in AppGuru — will accelerate our ability to address some of today’s most pressing IT challenges, while positioning us favorably to compete in the fastest growing part of the identity management market.”

What does the Meldium acquisition mean for LogMeIn and its customers?

The Meldium acquisition is expected to build upon and accelerate LogMeIn’s strategic initiative of empowering IT professionals to embrace, manage and secure today’s cloud-centric, consumerized workplace, according to Simon.

LogMeIn plans to offer standalone SSO while integrating Meldium’s capabilities into other solutions as well.

“Meldium’s SSO capabilities have distinct value and are complementary to the capabilities available in our broader IT management portfolio,” LogMeIn Director of Investor Relations Rob Bradley wrote in a blog post. “In the near-term, we intend to offer standalone SSO, while working to integrate these capabilities into our other offerings in ways that best address emerging market needs.”

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