Addition of Y-Combinator Alum Bolsters Cloud Identity Management Play
LogMeIn, Inc. recently announced the acquisition of San Francisco-based Meldium (incorporated as BBA, Inc.), a provider of intuitive single-sign-on (SSO), password management, and identity and access management (IAM) solutions. The acquisition immediately expands LogMeIn's popular IT portfolio with an elegant SSO offering, while introducing a natural extension of the identity, cloud app, and device management capabilities in its other IT management products. As a result, the deal is expected to build upon and accelerate LogMeIn's strategic initiative of empowering IT professionals to embrace, manage, and secure today's cloud-centric, consumerized, workplace.
Meldium, a venture-backed startup and Y Combinator alum, is focused on helping companies manage access to the rapidly growing number of cloud apps used in the workplace, specifically addressing the security risks that often arise from employees' poor password practices. The company offers a simple, secure way for teams and entire companies to manage passwords and accounts for popular business and personal cloud applications - apps that are most often introduced by individual employees or line-of-business workers. The company's namesake SSO product offers seamless access to nearly 1500 of today's most popular apps, including the likes of Dropbox, Google Apps, Hubspot, WordPress, Zendesk, Salesforce, Asana, Trello, Evernote, JIRA, and Rackspace.
With more than 100,000 small-and-medium business (SMB) IT customers, LogMeIn has been actively investing in an expanding IT portfolio designed to help businesses address and embrace the shift to mobile working, cloud adoption, employee-introduced technology - the bring-your-own or BYO trend - and the rapid proliferation of apps and connected devices. In addition to Meldium, the company's key IT offerings include AppGuru, a cloud app discovery and management offering; LogMeIn Central, a remote device management solution; Cubby Enterprise, an enterprise file sync and share solution; and LogMeIn Pro, the popular remote access product.
"Cloud apps and the bring-your-own-app trend - BYOA - have forced IT professionals to rethink how they manage identities, employee access, and data security. SSO is rapidly emerging as an effective means of addressing these security and identity management challenges, and Meldium has created what we believe is one of the most elegant, intuitive SSO solutions on the market today," said Michael Simon, CEO of LogMeIn. "We believe the addition of Meldium and SSO -- together with the identity and cloud app management capabilities introduced in AppGuru - will accelerate our ability to address some of today's most pressing IT challenges, while positioning us favorably to compete in the fastest growing part of the identity management market."
The full Meldium team is expected to join LogMeIn and will remain based in San Francisco.
"While building Meldium, we have seen from thousands of early-adopters how cloud apps are transforming business and IT management. In LogMeIn, we have found a team that shares our vision of a cloud-centric workplace and our belief in creating simple and elegant tools for small-and-medium businesses," said Boris Jabes, co-founder of Meldium. "We're very excited to join the LogMeIn team at a time where, together with its customers and wealth of experience, we have an amazing opportunity to help businesses embrace the cloud."
Terms of the deal
Under the terms of the transaction, LogMeIn acquired BBA, Inc. for approximately $15M in cash, a portion of which is performance and retention based and is expected to be paid over time.
Study Finds IT Pros Grossly Underestimate Scope of Employee Introduced Apps: http://lgme.in/W6awHC
Meldium is the simplest way for teams to access the cloud services they need. By aggregating and monitoring accounts across any web service, it frees your people from tedious account management. Administrators can easily onboard new people and users can see, share and log into their apps from a central dashboard.
About LogMeIn, Inc.
LogMeIn transforms the way people work and live through secure connections to the computers, devices, data, and people that make up their digital world. The company's cloud services free millions of people to work from anywhere, empower IT professionals to securely embrace the modern cloud-centric workplace, give companies new ways to reach and support today's connected customer, and help businesses bring the next generation of connected products to market. LogMeIn is headquartered in Boston's Innovation District with offices in Australia, Hungary, India, Ireland, and the U.K.
SOURCE: LogMeIn, Inc.