LogMeIn Buys LastPass Password Manager for $110 Million

Cloud-based access service provider LogMeIn is acquiring password management company LastPass in a cash deal valued at $110 million. The acquisition is part of a wider LogMeIn strategy to expand its offerings in identity management.

The sale is expected to close in the coming weeks, after which LastPass' services will continue to be supported in the near term. Over the long term, LastPass will keep operating under its own brand name while also incorporating the product line of Meldium, another identity management firm acquired by LogMeIn last year, the firm said.

In addition, the entire LastPass team will continue working on the company's products as a new LogMeIn unit. Founded in 2008 and based in Fairfax, Virginia, LastPass reportedly has around 7 million users.

'Good News for Our Users'

"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," said LogMeIn chairman and CEO Michael Simon in a statement. "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."

Addressing customers of the LastPass freemium service on his own company's blog, LastPass CEO Joe Siegrist noted, "I want to personally assure you that this is good news for our users." Siegrist said despite the acquisition LastPass has "no plans to change our existing business model." He added that the deal "provides us with access to resources that will enable us to innovate faster."

LastPass has long billed its service as "the last password you'll have to remember." Its service works via a browser add-on that encrypts and saves users' passwords for various Web sites. That approach reduces the...

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