LogMeIn (LastPass) to be acquired by Private Equity Firms
LogMeIn announced yesterday that it will be acquired by Private Equity Firm for approximately $4.3 billion in an all-cash transaction. LogMeIn had a strong portfolio of applications and services for Home users at one point in time; some may still remember Hamachi, a Lan-over-Internet service, Cubby, a cloud file storage service, or LogMeIn Free, a free remote access product.
The company acquired the maker of the popular password management solution LastPass in 2015. Most consumer products are no longer available as LogMeIn started to focus on Enterprise markets.
LastPass is still a popular solution when it comes to password management but things have heated up in the space considerable. New commercial and free contenders are available and it is easier than ever to switch between services.
LogMeIn, Inc. (NASDAQ: LOGM), a leading provider of cloud-based connectivity, today announced that it has entered into a definitive agreement (or the “Agreement”) to be acquired in a transaction led by affiliates of Francisco Partners, a leading technology-focused global private equity firm, and including Evergreen Coast Capital Corporation (“Evergreen”), the private equity affiliate of Elliott Management Corporation (“Elliott”), for $86.05 per share in cash. The all-cash transaction values LogMeIn at an aggregate equity valuation of approximately $4.3 billion.
The transaction is expected to close in mid-2020 according to the press release and it is " subject to customary closing conditions, including the receipt of stockholder and regulatory approvals". The future owners plan to "accelerate growth and product investment organically and inorganically".
What does it mean for LastPass customers?
The impact on LastPass is unknown at this point in time. It is quite possible that things stay the same or that major changes to the service will be announced. LastPass customers are advised to pay attention to announcements made by LogMeIn or the private equity firms once the deal passes to avoid that they are impacted by changes negatively.
Most password management solutions support the importing of LastPass data. If things go down south, LastPass customers could switch to a number of password management alternatives such as Bitwarden, Dashlane, 1Password, or, my personal favorite, KeePass.
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