LogMeIn Acquires Password Manager LastPass for $110 Million
Popular password manager LastPass is being acquired by remote-access management giant LogMeIn in a deal that’s reportedly worth between $110 million and $125 million.
A cash deal will see the acquisition of commonly used password manager LastPass by LogMeIn, a company firmly rooted in the enterprise market with its remote computing services.
LastPass is a password vault that stores an encrypted version of its customers’ passwords in the cloud, granting them the means to access and unlock with a single password. The service is available on browsers as extensions and add-ons as well as mobile devices as applications.
In a statement, LastPass CEO and co-founder Joe Siegrist assured customers that LastPass development will continue for free, Premium and Enterprise customers.
“We’re excited to join LogMeIn in delivering the next generation of identity and access management for individuals, teams and companies, with LastPass at the forefront.”
A majority of LastPass’ customers did not share the excitement, with one commenter saying:
As a customer who is currently fighting with LogMeIn on non-enterprise capabilities of Join.me, this makes me worried quite a bit. LassPass has always been great with security, customer communication and support and my current experience with LogMeIn is they sit behind their agreement for service and do little to nothing from a support perspective since we have a contact and can’t escape. That does not create happy customers. Not jumping ship yet, but I’ll be watching closely.
In addressing customer concerns, Siegrist wrote:
To address the concerns that some in our community have raised, I want to personally assure you that this is good news for our users.
First of all, we (LogMeIn/LastPass) have no plans to change our existing business model. Secondly, this acquisition provides us with access to resources that will enable us to innovate faster, as we continue to strive to deliver an even better product than the one you have come to know and love.
It is also important to note that the current LastPass team is staying in place and remains committed to deliver on the promise of privacy, security and convenience that has been our mission since day one.
LogMeIn has plans to bring the capabilities of Meldium, a team password management app it acquired last year, into LastPass.
LogMeIn’s investor briefing through a press release revealed that a cash sum of $110 million will be paid along with an additional $15 million earmarked for equity holders and key employees of LastPass for achieving “certain milestones and retention targets” in two years after the acquisition.
Images from Shutterstock & LastPass.