Software-as-a-service company, LogMeIn, has agreed to acquire single-sign-on (SSO) and password management service, LastPass (incorporated as Marvasol). This follows the recent launch of LogMeIn’s Xively Identity Manager, designed to offer a seamless means of managing identities and access for employees, customers, apps and connected products.
Under the terms of the transaction, LogMeIn will pay $US110 million in cash upon close for all outstanding equity interests in LastPass, with up to an additional $US15 million in cash payable in contingent payments.
This is expected to be paid to equity holders and key employees of LastPass upon the achievement of certain milestone and retention targets over the two-year period following the closing of the transaction.
LogMeIn said, in a statement, that it decided to acquire the company as it’s a high growth business with loyal users and an outstanding product line.
It claimed LastPass will immediately bolster LogMeIn’s position in the multi-billion dollar identity and access management (IAM) market, while accelerating one of the company’s key strategic growth initiatives. The deal is expected to close in the coming weeks.
LogMeIn chairman and CEO, Michael Simon, said this transaction gives the company a market leading position in password management, while also providing a foundation for delivering the next generation of identity and access management solutions to individuals, teams and companies.
“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.
“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,” LastPass CEO, Joe Siegrist, added.
Simon indicated that LogMeIn is building a product and go-to-market strategy that introduces new ways to help individuals and businesses secure access to sensitive information.
“The LastPass acquisition is expected to play a key role in this effort, is highly complementary to LogMeIn’s existing identity portfolio, and offers a natural extension to LogMeIn’s position in the access market.”
Following the close of the deal, LogMeIn also plans to bring complementary capabilities of its early identity management investments, including those of Meldium, which it acquired in September 2014, into LastPass.
In the near-term, both the Meldium and LastPass product lines will continue to be supported, with longer-term plans to centre around a singular identity management offering based on the LastPass service and brand.