LogMeIn buys Last Pass – four months after it suffered a major data breach
LogMeIn has announced it will be acquiring password and account management company LastPass as it looks to fight back against the raft of recent high-profile data breaches.
The deal is expected to close within the next few weeks will see the LogMeIn initially pay $110 million (£72m) in cash for LastPass, could possibly rise to $125 million (£81m) if certain targets are met over a two-year period.
LastPass, claims to have millions of users throughout the world including around 15,000 businesses, and its signature tool is a password management service that helps users create strong, secure passwords for websites.
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. Third party passwords were not affected.
“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.
“We believe this transaction instantly gives us a market leading position in password management, while also providing a highly favourable foundation for delivering the next generation of identity and access management solutions to individuals, teams and companies.”
LogMeIn will combine LastPass’ offerings with that of Meldum, another security management company it bought last year, to create a new product it is building to take advantage of what has become a multi-billion-pound industry following a number of major breaches recently.
“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.”
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