The deal adds to LogMeIn’s portfolio of identity management products, but it also angers some of LastPass’ users.
LogMeIn, which is looking to add more security capabilities to its remote computer access business, is buying password manager LastPass for $110 million in a deal that officials with both companies praised but which raised concerns among some of LastPass’ customers.
LogMeIn could pay another $15 million if LastPass hits certain milestones during the two years after the deal closes, which reportedly is expected to occur within the next few weeks. The two companies announced the deal Oct. 9. It’s the latest step by LogMeIn into the identity and access management (IAM) space as the company looks to expand its reach into the Internet of things (IoT), where such technology will be important.
LogMeIn last year bought identity management firm Meldium, and at its user conference in Boston earlier this month unveiled an identity manager solution for its Xively IoT platform. According to company officials, LogMeIn will bring the complementary technologies it already has—including those it gained through its Meldium acquisition—into LastPass. Initially, the company will keep the Meldium and LastPass product lines separate, with the eventually plan being to bring those identity management technologies into a single offering based on the LastPass brand.
“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,” LogMeIn CEO Michael Simon said in a statement.
Identity management will continue to grow in importance as more consumers and workers use cloud, Web and mobile apps, forcing a more decentralized approach to managing identity in the workplace, LogMeIn officials said.
The company noted that 70 percent of businesses use employee-introduced applications, and that 80 percent of cloud applications and services contain confidential regulated or company information. In addition, 64 percent of Internet users use the same passwords for more or all Websites they visit.