LogMeln, the company offering identity management service and products to the internet users was looking to provide more security features to the remote accessing of computers. In order to achieve this they have bought LastPass, the password manager company. The deal was made for $110 million. The merge of the firms had caused anger among some of the LastPass users.
Apart from the deal price, LastPass will receive $15 million as additional cash as conditional payment if the firm meets the retention and milestone targets within a period of two years after completing the acquisition procedure. This will make the total deal price of $125 million. The merge of firms was announced on October 9th.
Last year, LogMeln made another acquisition as they bought Meldium, the identity management firm. The user conference for this firm was held in Boston this month and LogMeln revealed an identity management solution for the Xively IoT platform. The company officials have stated that LogMeln will use the complementary technologies owned by them as well as that they gained from the Meldium acquisition in LastPass. However, the product lines of Meldium and LastPass will remain separate initially and will eventually offer them as a single product line based on LastPass.
LogMeln CEO, Michael Simon, in a statement said that the transaction is expected to give a leading position for the company in the password management market instantly. It is also expected to provide a favorable foundation for delivering identity and access management solutions of next generation level to the companies, individuals and teams.
LogMeln officials are confident that the importance of identity management will grow as more and more consumers are using the cloud, mobile apps and web apps and this will create a need for a decentralized approach for managing the identity.
The acquisition has sparked uproar from LastPass customer. Some of the customers are refusing to do business with LogMeln. The user comments on a LastPass blog discussing the merge clearly indicate the disappointment of the LastPass users. One of the users described the acquisition as the “Worst News Ever”.
The criticism is mainly due to some concerns regarding the business done by LogMeln. LastPass was a company which was offering purely security products and it is believed that LogMeln will make LastPass only a feature and will not remain as the remote access product. Moreover, there are chances that LogMeln may hike the prices on its product in the near future.