LogMeIn has announced that it has acquired password management outfit LastPass.
The company said that the millions of users of LastPass would strengthen its position in the identity and access management market, and help to speed up a key growth initiative it's focusing on.
LogMeIn says it is building a product to embrace the increased adoption of BYOA (bring your own apps) in the workplace, with 70 per cent of companies now using apps introduced by employees according to research from Edge Strategies.
Indeed, recent research by Enterprise Strategy Group and LogMeIn itself found that 80 per cent of cloud apps and services contained sensitive or regulated private company data.
The deal will be closed in the coming weeks, and LogMeIn is going to pay $110 million (£72 million) in cash, with an additional up to $15 million (£10 million) cash delivered in contingent payments to equity holders and key staff members who achieve certain targets which have been set for the next two years after the deal has been sealed.
Following the move being made, LastPass will be bolstered by LogMeIn’s complementary identity management tech including that of Meldium, another outfit it acquired last autumn. Both the Meldium and LastPass products will continue to exist for now, but the long-term plan is to merge them together into a single identity management service which will carry the LastPass brand name.
Michael Simon, LogMeIn’s Chairman and CEO, commented: “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.”
“We believe this transaction instantly gives us a market leading position in password management, while also providing a highly favourable foundation for delivering the next generation of identity and access management solutions to individuals, teams and companies.”