The maker of LastPass, a popular password manager, is being acquired by LogMeIn in a sale worth at least $110 million.
LastPass, founded in 2008, makes software that generates strong passwords and stores them in an encrypted vault. The software integrates with desktop and mobile browsers and automatically fills in password fields on websites when a user enters a master password. The basic software can be used for free, but individual users and businesses can pay for premium features.
LastPass CEO and cofounder Joe Siegrist wrote today that his company is "excited to join LogMeIn in delivering the next generation of identity and access management for individuals, teams and companies, with LastPass at the forefront."
Siegrist wrote that LastPass will continue to improve its software for free, premium, and enterprise customers. Siegrist's blog post drew a few dozen comments, with most expressing disappointment about the sale and criticizing LogMeIn. "While I congratulate the lastpass founders on a nice exit, we as an Enterprise user will monitor very carefully if that impacts the pricing," one customer wrote. "There’s a reason we never used LogMeIn, because they’re not delivering appropriate value for SMBs at their price points."
LogMeIn provides remote desktop management and support software to individuals and businesses. The company discontinued a free version of its product last year.
LogMeIn's announcement said it will close the deal with LastPass in the coming weeks, paying $110 million in cash upon close with an additional $15 million in payments to equity holders and key employees of LastPass contingent on reaching "certain milestone and retention targets" in the two years after the acquisition.
“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,” LogMeIn CEO Michael Simon said in the announcement. “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.”
Last year, LogMeIn acquired a password manager for teams called Meldium, with the promise that Meldium would continue to provide the same service. With LogMeIn's latest acquisition, Meldium capabilities will be integrated into LastPass. "In the near-term, both the Meldium and LastPass product lines will continue to be supported, with longer-term plans to center around a singular identity management offering based on the LastPass service and brand," LogMeIn said.
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