LogMeIn on Friday said that it would acquire single-sign-on (SSO) and password management service LastPass for $125 million in cash.
LastPass (incorporated as Marvasol, Inc.), has millions of users, and is expected to strengthen LogMeIn’s position in the identity and access management (IAM) market and to help it grow further.
Following the acquisition, LogMeIn plans on expanding the capabilities of LastPass with its previous identity management investments, including those of Meldium, the cloud-based single-sign-on (SSO), password management, and identity and access management (IAM) solutions startup that it acquired in September 2014.
LogMeIn is determined to continue offering support for both the Meldium and LastPass product lines as part of its near-term plans. In the long-term, the company said that it intends to create a single identity management offering built on the LastPass service and brand.
LogMeIn said that $110 million will be paid for all outstanding equity interests in LastPass, and that the remaining $15 million will be paid to shareholders and key employees of LastPass after certain milestone and retention targets are achieved over the two-year period following the closing of the transaction, which is expected to close in weeks.
Bostson, Mass.-based LogMeIn has over 800 employees in 8 offices around the world.