LogMeIn, Inc. 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.
"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.
"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."