LogMeIn to spin off password manager LastPass as a separate company
LogMeIn Inc. today announced that it plans to spin off its password manager LastPass as a separate company.
The decision, coming two years after LogMeIn was acquired by Francisco Partners Management and Elliott Management’s Evergreen affiliate for $4.3 billion, is said to allow LastPass to increase focus, investment and support for its business. LastPass was previously acquired by LogMeIn for $110 million in 2015.
Coming into its spinoff as a separate company, LastPass is a leader in so-called zero-knowledge password management, with 30 million users and 85,000 businesses. A significant majority of LastPass’ business is represented by paying corporate customers, in contrast to millions of consumers who can use the service for free.
LastPass allows users to generate, secure and share credentials seamlessly and monitor personal information on the dark web. The service provides insight and control for information technology teams with a comprehensive, actionable administration console and policy configurations. LastPass claims to improve security for businesses further by reducing credentials through simplified access with single sign-on and passwordless multifactor authentication to cloud and legacy applications, virtual private networks and workstations.
Following the spinoff, LastPass plans to deliver an accelerated development timeline, including faster, seamless save and fill, an enhanced mobile experience and additional third-party integrations for business, among other updates. Support channels will be expanded and LastPass will also be launching a new look and feel on its website.
“The success we’ve seen across the entire LogMeIn portfolio over the last 18 months proves there is a vast growth opportunity ahead for both LastPass and LogMeIn,” Andrew Kowal, a partner at Francisco Partners, said in a statement. “We assessed our portfolio with a laser focus on unlocking the full potential of our business and identifying how we could best serve customers and accelerate growth across very different markets.”
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