LogMeIn Set to Establish LastPass as an Independent Cloud Security Company Amid Strong Market Demand
Industry leader in Enterprise Password Management with over 50% Revenue CAGR over the last 3 years
LogMeIn, Inc., a leading provider of cloud-based solutions such as LastPass, GoToConnect, GoToMeeting, and Rescue, announced the intent to establish LastPass as a standalone company.
The category leader in zero-knowledge password management, LastPass is used by more than 30 million users and 85,000 businesses worldwide and is set for strong and sustained growth as consumers and businesses continue prioritizing password security.
By establishing LastPass as a standalone business, the company plans to increase investment in the customer experience, go- to-market functions and engineering to accelerate its organic growth in password management, Single Sign-On (SSO) and Multi-factor Authentication (MFA). Customers will experience planned enhancements on an accelerated timeline in 2022, with the benefit of additional dedicated LastPass resources.
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“The substantial scale of LastPass, its tremendous growth, and its market leading position and brand makes it a perfect candidate to seize new opportunities as its own standalone company,” said Bill Wagner, President and Chief Executive Officer of LogMeIn.
Today, the significant majority of LastPass’ business is represented by corporate customers, illustrating the business imperative that password management has become to organizations of all sizes. The importance of securing identity verification among consumers and businesses is rising given the rapid proliferation of passwords and the prevalence of unauthorized access by hackers.
“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,” said Andrew Kowal, Partner, Francisco Partners. “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.”
The global shift to remote working has also fueled the adoption of new accounts and applications; 50 percent of people in the 2021 Psychology of Passwords research reported twice the number of accounts today, compared to pre-pandemic levels.
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“Organizations of all sizes across all verticals have applications that lack a SAML or OpenID interface for single sign-on access, and their management is acutely aware of the financial costs and productivity burdens that come with repeated credentials resets,” said Jay Bretzmann, Program Director, Cybersecurity Products, IDC. “LastPass clearly sees the opportunity in today’s market, and with today’s announcement, is poised to deliver increased strategic value to customers.”
Using a zero-knowledge security model, LastPass empowers end users to generate, secure, and share credentials seamlessly, and to monitor personal information on the dark web, while providing valuable insight and effortless control to IT teams with the most comprehensive, yet actionable admin console and policy configurations. By reducing credentials through simplified access with SSO and passwordless MFA to cloud and legacy applications, VPNs, and workstations, LastPass further improves security for businesses.
“Today’s announcement also reflects our strategic priority to strengthen and invest in our flexible work enablement portfolio across unified communications and collaboration and IT management and support,” Wagner added. “We believe that LogMeIn is well positioned to continue to deliver strong results and capitalize on the tremendous opportunity in today’s virtual environment.”