LogMeIn announces plan to spin off LastPass into its own company
LogMeIn announced on Tuesday that it is spinning off password manager LastPass into its own company.
LogMeIn explained that the move would allow LastPass to invest heavily in “customer experience, go-to-market functions and engineering” as a way to improve its “organic growth in password management,” Single Sign-On (SSO) and multi-factor authentication (MFA).
The separation will also help the changes move forward quicker, with LogMeIn explaining that they expect customers to see the changes at some point in 2022.
The company said LastPass currently has more than 30 million users and 85,000 business customers across the world. LastPass has grown significantly in recent years, with more than 50% revenue CAGR over the last three years.
LogMeIn CEO Bill Wagner said the scale of LastPass, its growth, and its position in the market make it “a perfect candidate to seize new opportunities as its own standalone company.” LogMeIn owns several other products including GoToConnect, GoToMeeting and Rescue.
“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.”
Investor Andrew Kowal, a partner at Francisco Partners, noted that the after reviewing the entire LogMeIn portfolio over the last 18 months, they saw an opportunity to “unlock the full potential” of LastPass and improve the service’s offerings to customers.
In a message to users, LastPass reiterated that by making it an independent company, they could “strategically increase investment and support in LastPass” in its mission.
“You will start to see an enhanced LastPass, on an accelerated timeline. We are working on faster, seamless save and fill, a delightful mobile experience, and even more third-party integrations for businesses, among many other updates. We are expanding our support channels so we can answer your questions faster, right when you need them, and you’ll be welcomed by a new look and feel on our website,” LastPass told users.
“We are investing directly in areas that customers like you have told us are most important. Don’t worry – there are no changes to your account or data in your vault. This is the same great product, now with even more focus on keeping your data safe.”