LogMeIn announced on Monday it has agreed to acquire LastPass for US$110 million in cash on close of the deal for all outstanding equity interests. Up to an additional US$15 million in cash, payable in contingent payments, 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.
Michael Simon, LogMeIn’s Chairman and CEO, said LastPass was a high growth business with millions of loyal users and an award winning product line - and its acquisition 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.
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.
“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,” said Joe Siegrist, CEO of LastPass.
“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.”