LastPass parent company LogMeIn has revealed plans to spin off the password manager as an independent cloud security company, citing an uptick in new accounts created since the pandemic as one of several motivators for the move.
LogMeIn purchased LastPass for $110 million in cash back in 2015, with an additional $15 million payable over a two-year period after the deal closed contingent upon the company reaching certain milestone and retention targets. Today, LastPass is used by more than 30 million people and 85,000 businesses around the world.
In its 2021 psychology of passwords report, the company found that 91 percent of respondents have created at least one new account this year. Furthermore, nine out of 10 said they have as many as 50 or more online accounts / application credentials to manage.
Given the continued prioritization of password security, LogMeIn believes LastPass is destined for sustained growth. That’ll be especially true as a standalone business, as LastPass will be able to further focus on features like multi-factor authentication and single sign-on. Users can expect to see new and improved features such as faster save and fill, a better mobile experience and more third-party integrations roll out on an accelerated timeline.
LogMeIn didn’t say when it expected the spinoff to be complete, but promised that there will be no immediate changes to customer accounts.