Remote access provider LogMeIn is to purchase password management firm LastPass for $125 million, in a deal designed to build out its capabilities in the identity and access management space.
LogMeIn says that end user adoption of cloud services and increasingly decentralized approaches to identity management had informed its decision to buy LastPass.
It added that the capabilities it would acquire are highly complementary to its current identity portfolio and would offer a “natural extension” to its 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 LogMeIn's Chairman and CEO, Michael Simon, in a statement.
"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."
The LastPass and Meldium lines will continue to be supported for now, but in the longer term LogMeIn is planning to merge them into a single identity management offering under the LastPass brand and service.
The announcement has not gone down well with LastPass customers, however, who took to the firm’s online forum to express their displeasure.
Several claimed they would seek an alternative provider.
One enterprise user, “SomeJoe7777,” offered a typical response.
“We left LogMeIn 2 years ago because of high prices, poor customer service, and an inferior product,” they said.
“I will be looking to do the same with LastPass. We'll look for a new password manager that isn't tainted. Very poor research on LastPass's part in that you appear to be completely unaware that the company values of LogMeIn are the exact opposite of those of your user base.”