Boston, Massachusetts – LogMeIn, Inc (NASDAQ: LOGM), announced that it is officially taking possession of LastPass, a password management company with a $110 million deal. The software provider aims to expand its services in identity management.

LogMeIn chairman and CEO, Michael Simon, claimed 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.”  Global Newswire reported.

Credit: Tech News Today

The transaction terms

LogMeIn long-term objectives are to keep LastPass running under its own brand name, but incorporating the product line of Meldium, which is another identity management firm owned by the company in 2014.

Furthermore, the password management company will be working on the company’s products as a new LogMeIn unit. LastPass have approximately 7 million users, and it is established in Fairfax, Virginia. 

On the other hand, LastPass CEO, Joe Siegrist claimed that he was personally assuring that this new deal will be a positive action for their millions of users. He also confirmed that the acquisition did not mean that the company was changing their business model, it will remain the same, but LogMeIn will provide them more access resources that will help them innovate faster.

Same business vision

Both LogMeIn and LastPass company, share a great common vision on reshaping identity and access management in ways that productivity increases and security for users is improved – a win-win deal. “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.” said Joe Siegrist, CEO of LastPass, Global Newswire reported.

In addition, apart from the $110 million payment, LogMeIn will pay an additional $15 million in cash that is expected to be rewarded to equity holders and key employees of LastPass upon the achievement of certain milestones and retention targets during a period of 2 years, when the transaction is finished.

Source: Global Newswire