LogMeIn, Inc. (Nasdaq:LOGM) today announced that it has agreed to
acquire LastPass (incorporated as Marvasol, Inc.), the popular
single-sign-on (SSO) and password management service. A high
growth business with millions of loyal users and an award winning
product line, LastPass 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.
The future identity market is being shaped by realities that
come from end-user driven adoption of cloud, web and mobile apps –
the bring-your-own-app (BYOA) trend -- and increasingly
decentralized approaches to managing identity in the
workplace. Seventy (70) percent of companies report
using employee-introduced applications (as opposed to IT introduced
and company procured applications) in the workplace.1 This is
especially relevant to IT professionals and businesses since eighty
(80) percent of cloud applications and services contain sensitive
regulated or company confidential data.2 Meanwhile,
approximately two-thirds (64 percent) of internet users use the
same passwords for most or all websites.3
LogMeIn is building a product and go-to-market strategy that
embraces this BYOA reality and introduces new ways to help
individuals and businesses secure access to sensitive
information. The LastPass acquisition is expected to play a
key role in this effort, is highly complementary to LogMeIn’s
existing identity portfolio, and offers a natural extension to
LogMeIn’s leadership position in the access market.
“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 Michael
Simon, LogMeIn’s Chairman and CEO. “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.”
Following the close of the deal, LogMeIn plans to bring
complementary capabilities of its early identity management
investments, including those of Meldium, which it acquired in
September 2014, into LastPass. In the near-term, both the
Meldium and LastPass product lines will continue to be supported,
with longer-term plans to center 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.”
Transaction Details
Under the terms of the transaction, LogMeIn will pay $110
million in cash upon close for all outstanding equity interests in
LastPass, with up to an additional $15 million in cash payable in
contingent payments which are 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.
Conference Call Information
LogMeIn will host a conference call to discuss the details of
the transaction at 8:30am ET, today, Friday, October 9, 2015.
Details as follows.
|
What: Conference call and live webcast to discuss LogMeIn’s
acquisition of LastPass |
When: Friday, October 9, 2015 |
|
Time: 8:30 a.m EDT |
Live call: Dial In: 877-407-9124 |
|
|
Dial In
(International): 201-689-8584 |
|
|
Replay Number:
1-877-660-6853 |
|
|
Replay Number
(International): 1-201-612-7415 |
|
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Conference ID #
for replay: 13621996 |
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Webcast: https://investor.logmeininc.com |
|
|
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About LastPass
LastPass is an award-winning password manager that helps
millions around the world organize their online lives. LastPass
makes going online easier and safer, supporting all browsers,
operating systems and mobile devices. LastPass Enterprise scales
SSO and password management for teams small and large, helping IT
be more secure, maintain compliance, and increase productivity of
the organization. Founded in 2008, LastPass is headquartered in
Fairfax, Virginia. For more information, visit
https://lastpass.com.
About LogMeIn, Inc.
LogMeIn Inc. (Nasdaq:LOGM) simplifies how people connect to each
other and the world around them. With millions of users worldwide,
our cloud-based solutions make it possible for people and companies
to connect and engage with their workplace, colleagues, customers
and products anywhere, anytime. LogMeIn is headquartered in Boston
with offices in Bangalore, Budapest, Dublin, London, San Francisco
and Sydney.
Cautionary Language Concerning Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, including but not limited
to, statements regarding the popularity, value and effectiveness of
the LogMeIn and LastPass products and services, LogMeIn 's key
strategic growth initiatives, the acquisition providing LogMeIn
with a market leading position in identity and password management
and the growth or success of the identity and management market.
These forward-looking statements are made as of the date they were
first issued and were based on current expectations, estimates,
forecasts and projections as well as the beliefs and assumptions of
management. Words such as "expect," "anticipate," "should,"
"believe," "hope," "target," "project," "goals," "estimate,"
"potential," "predict," "may," "will," "might," "could," "intend,"
variations of these terms or the negative of these terms and
similar expressions are intended to identify these forward-looking
statements. Forward-looking statements are subject to a number of
risks and uncertainties, many of which involve factors or
circumstances that are beyond LogMeIn's control. LogMeIn's actual
results could differ materially from those stated or implied in
forward-looking statements due to a number of factors, including
but not limited to, conditions affecting the markets in which
LastPass operates, market acceptance of LastPass' existing and new
products, any expense, claims, legal proceeding or other damages
resulting to LogMeIn following the closing of the transaction
arising from security related issues specific to LastPass,
competition from larger and more established companies in LastPass'
markets, the protection of LastPass' intellectual property, the
retention of key employees, the parties' ability to satisfy the
purchase agreement’s conditions and consummate the transaction,
LogMeIn's ability to successfully grow LastPass' business, and
other events, factors and risks disclosed in filings with the
SEC. The forward-looking statements included in this press
release represent LogMeIn’s views as of the date of this press
release. LogMeIn anticipates that subsequent events and
developments will cause its views to change. LogMeIn undertakes no
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. These forward-looking statements should not be relied
upon as representing LogMeIn's views as of any date subsequent to
the date of this press release.
LogMeIn, LogMeIn Central, LogMeIn Pro, LogMeIn
Rescue, join.me, Xively, Meldium and BoldChat are trademarks or
registered trademarks of LogMeIn in the US and other countries
around the world
1 Managing applications in the age of BYOA, Edge
Strategies, April 2014
2 Password security in a cloudy world, Enterprise Strategy
Group and LogMeIn, 2015
3 Ofcom Adults’ media use and attitudes report, 2015
Contacts:
Media:
Craig VerColen
781-897-0696
press@logmein.com
Investors:
Rob Bradley
781-897-1301
rbradley@logmein.com
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