Remote connectivity services provider LogMeIn announced today the acquisition of Meldium, a startup that specializes in cloud-based single-sign-on (SSO), password management, and identity and access management (IAM) solutions.
Meldium is being acquired for $15 million in cash, part of which is performance and retention based and is expected to be paid over time. LogMeIn says it's pleased with the startup's growth rates, but it doesn't expect its early revenue to have a material impact on H2 or full year revenue.
The acquisition will enable LogMeIn to add an SSO offering to its portfolio, which currently includes cloud app discovery and management solution AppGuru, the remote device management product LogMeIn Central, the enterprise file sync and sharing solution Cubby Enterprise, and the remote access application LogMeIn Pro.
Meldium's SSO solution is considered complementary to the capabilities in LogMeIn's IT management portfolio. In the near-term, the company plans on keeping it a standalone product, but it will work on integrating its capabilities into other offerings.
"Cloud apps and the bring-your-own-app trend – BYOA – have forced IT professionals to rethink how they manage identities, employee access, and data security. SSO is rapidly emerging as an effective means of addressing these security and identity management challenges, and Meldium has created what we believe is one of the most elegant, intuitive SSO solutions on the market today," commented Michael Simon, CEO of LogMeIn.
"We believe the addition of Meldium and SSO – together with the identity and cloud app management capabilities introduced in AppGuru – will accelerate our ability to address some of today's most pressing IT challenges, while positioning us favorably to compete in the fastest growing part of the identity management market," Simon added.
On the other hand, Meldium believes that integration with LogMeIn's infrastructure will allow it to deliver better services to a larger audience.
"While building Meldium, we have seen from thousands of early-adopters how cloud apps are transforming business and IT management. In LogMeIn, we have found a team that shares our vision of a cloud-centric workplace and our belief in creating simple and elegant tools for small-and-medium businesses," said Boris Jabes, co-founder of Meldium. "We're very excited to join the LogMeIn team at a time where, together with its customers and wealth of experience, we have an amazing opportunity to help businesses embrace the cloud."
Meldium's SSO and user management services customers are not impacted by the acquisition. The company has less than 10 employees and all of them will join LogMeIn. They will remain based in San Francisco, the company said in an FAQ.