The company's password manager is used by over 30m users and 85k businesses worldwide and is set for strong and sustained growth going forward as both consumers and businesses continue to prioritize password security.
By establishing LastPass as a standalone business, LogMeIn plans to increase investment in its customer experience, go-to-market functions and engineering to accelerate its growth in password management, Single Sign-On (SSO) and Multi-Factor Authentication (MFA).
Chief executive officer of LogMeIn, Bill Wagner provided further details behind the reasoning to spin off LastPass in a press release, saying:
“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. 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. We believe that LogMeIn is well positioned to continue to deliver strong results and capitalize on the tremendous opportunity in today’s virtual environment.”
Spinning off LastPass
According to LogMeIn, the significant majority of LastPass' business is represented by corporate customers which makes sense given how password management has become a business imperative for organizations of all sizes.
At the same time, the shift to working from home during the pandemic has fueled the adoption of new accounts and applications with 50 percent of those surveyed in the company's 2021 Psychology of Passwords report saying that they now use twice the number of accounts today compared to pre-pandemic levels.
LastPass employs a zero-knowledge security model which empowers end users to generate, secure and share credentials seamlessly while also monitoring their personal information on the Dark Web. By reducing the number of credentials users need to remember through simplified access with SSO and passwordless MFA, LastPass further improves security for businesses.
We'll likely hear more regarding LastPass becoming a standalone company next year when LogMeIn's plans go into effect.