LogMeIn Spinning Off LastPass as Separate Company with Increased Investment

LogMeIn is spinning off LastPass, its cloud-based zero-knowledge password management solution, as a standalone company.

More than 30 million users and 85,000 businesses use LastPass globally. And it’s 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 multifactor authentication (MFA). Customers will experience planned enhancements on an accelerated timeline in 2022, with the benefit of additional dedicated LastPass resources.

Patrick McCue is LogMeIn’s global vice president of channel sales.

LogMeIn’s Patrick McCue

“LastPass’ impressive growth and market leadership makes it a perfect candidate for partners to seize new opportunities amid exploding demand in the password management industry,” he said.

Partners can sell LastPass in the same way they have in the past, McCue said. They’ll see no impact to the amount of commissions earned and paid. LastPass is a natural for security VARs, solution providers and MSPs.

This year, LogMeIn launched its MSP program and is onboarding partners. It’s building a new team to focus on security VARs and solution providers in 2022. The company will also focus on a new program and enablement for its partners.

Demand for LastPass Accelerating

“As security threats significantly increase, consumer and enterprise demand for LastPass to eliminate login frustrations and protect sensitive data increased in tandem,” McCue said. “As a standalone company, LastPass will be able to enhance features on an accelerated timeline. We are working on a faster save and fill, friendlier mobile experience and additional third-party integrations for businesses.”

The LogMeIn program and partners will remain business as usual through the remainder of 2021, he said. In 2022, partners will see the LastPass program transition over to the LastPass company.

Today, most of the LogMeIn LastPass business is represented by corporate customers. That illustrates the importance of password management 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.

Bill Wagener is LogMeIn‘s president and CEO.

“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,” he said. “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.”