In 2015 LogMeIn purchased LastPass for $125 million. LastPass now has over 30 million users and over 85,000 businesses use it globally.
LastPass has said over the last 18 months it has seen a rise in new accounts and applications, now LogMeIn has confirmed its intent to establish LastPass as an independent company. LastPass claims this will lead to increased investment in the company and significant improvements to the customer experience. The company has confirmed it is already working on a ‘delightful mobile experience’, more third-party integrations for business, a new look and feel on the LastPass website and other updates.
In 2019, LogMeIn was also sold to Elliott Management Corporation and Francisco Partners (Private Equity Firms), for $4.3 billion. Since this happened and LogMeIn’s purchase of LastPass, customers have seen the price of LastPass Premium increase from $12 to much higher prices and also many customers have commented on how LastPass appears to have gone downhill overall, highlighting that the platform looks dated and is buggy. Not only has the price of Premium increased, but also features were removed and restrictions were added to the LastPass free plan. Despite all this, LastPass has remained very popular and loved among many – the platform still wins awards and currently has a rating of 4.4 stars on the App Store.
Bill Wagner, President and CEO of LogMeIn has said:
“As customers, you’ll start to see us deliver 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. We are investing directly in areas that customers like you have told us are most important.
I couldn’t be more excited about this change for LastPass. This is the ideal time for the company to seize new opportunities as its own organization.”
Overall there has been a significant rise in new password managers and a rise in their general popularity in recent years. LastPass which historically was one of the first and perhaps is still one of the biggest has seen many customers move to alternative platforms such as 1Password and the increasingly popular Bitwarden. Even the hugely popular VPN service NordVPN has launched its own password manager called NordPass.
The password manager industry is becoming very crowded and it would appear LastPass and LogMeIn are aware that they need to make changes to stay ahead, which seems to be exactly what is happening.
It is yet to be seen what other changes will happen and how successful the already announced changes will be, but this certainly does appear to be a step in the right direction for LastPass.