LogMeIn has announced that the password management company LastPass, which LogMeIn acquired in October 2015 for $125 million, will become an independent company once again. Since the company was acquired by LogMeIn in 2015, LastPass has enjoyed impressive growth, which has had 50% revenue CAGR over the past 3 years.
Last year, the company changed its business model with a reduction in the functionality of its free product tier, which restricted users to just one device type. The move saw many of its non-paying users switch to an alternative password manager with Bitwarden one of the biggest winners; however, LastPass is still the market-leading password management company and now serves around 85,000 businesses and has around 30 million monthly users.
The move to a standalone company will see LogMeIn hire a new CEO in 2022 to run LastPass, with the current LogMeIn CEO and president Bill Wagner due to serve as CEO until the new CEO is hired. Any change such as this is likely to have an impact on the product and user experience, although few details have been released about how the change will affect customers.
Wagner said customers will see an enhanced product with improvements made on an accelerated timeline. One of the first improvements will be to its save and fill function, which will become much faster and more streamlined and the company is also working on creating a ‘delightful mobile experience.’ The company is also planning to expand its support channels to ensure customers’ questions are answered faster, and the website will get an overhaul and will have a new look and feel. Wagner said money will be invested in the areas that existing customers have said are important and there will be a greater focus on keeping customers’ data safe. At this stage, there are no indications that there will be any changes to the pricing policy. Wagner said none of the proposed changes will affect customers’ accounts or data vaults.