LogMeIn To Acquire LastPass, Single-sign-on And Password Management Service

LogMeIn Inc., the software company based on the South Boston waterfront, will pay up to $125 million for the password management service LastPass.

However earlier this year LastPass prompted all of its users to cahnge teir master passwords following a major breach. the company that email addresses, password reminders, server per user salts and authentication hashes were compromised.

Siegrist wrote that LastPass will continue to improve its software for free, premium, and enterprise customers. From a corporate perspective, this sounds like a good match, but a few LastPass users have already filled the announcement post with negative comments expressing their disappointment. “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.

In addition, another $15 million in cash is available in contingent payments if LastPass meets certain milestone and retention targets over the two years following the deal’s close, LogMeIn also noted. It marks the largest acquisition LogMeIn (NASDAQ: LOGM) has made in its 12-year-history, according to a spokesman.

LogMeIn provides remote desktop management and support software to individuals and businesses.

Of course, there’s no guarantee that LogMeIn will continue to offer a free version of LastPass forever. LogMeIn, which is known for its cloud-based identity management and collaboration tools for businesses, said the acquisition “is highly complementary to LogMeIn’s existing identity portfolio and offers a natural extension to LogMeIn’s leadership position” in the identity and access management market.

“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”, Michael Simon, LogMeIn’s Chairman and CEO said.

LogMeIn says it will continue supporting the product lines of both Meldium and LastPass for the foreseeable future, but eventually it will consolidate them into a single identity management business that will carry the LastPass name.