This morning we 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 our popular IT portfolio with an elegant SSO offering, while introducing a natural extension of the identity, cloud app, and device management capabilities in our other IT management products. As a result, the deal is expected to build upon and accelerate one of our key strategic growth drivers: Empowering IT professionals with the tools they need to embrace, manage, and secure today’s cloud-centric, consumerized, workplace.
You can find the full details in our release and get the answers to the most common questions surrounding the acquisition below.
FAQs surrounding LogMeIn’s acquisition of Meldium:
Q: What is Meldium?
A: Meldium is a cloud-based single-sign-on (SSO), password management, and identity and access management (IAM) solution. It is designed to help companies address the security risks that often arise from employees’ poor password practices around -- and limited identity management capabilities for -- the rapidly growing number of cloud apps used in the workplace. It offers a simple, secure way for teams and entire companies to manage passwords and secure employee access to popular business and personal cloud applications – apps that are most often introduced by individual employees or line-of-business workers. Meldium offers integration with 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.
Q: How much did LogMeIn pay for Meldium?
A: LogMeIn acquired Meldium for approximately $15 million in cash, a portion of which is contingent on performance and retention based payments expected to be paid over time.
Q: How many employees does Meldium have? What will happen to them?
A: Meldium has less than 10 employees. All have been offered and accepted positions at LogMeIn. The Meldium team will remain based in San Francisco.
Q: Will this be a standalone product or bundled with other LogMeIn offerings?
A: We believe that Meldium’s SSO capabilities have distinct value and are complementary to the capabilities available in our broader IT management portfolio. In the near-term, we intend to offer standalone SSO, while working to integrate these capabilities into our other offerings in ways that best address emerging market needs.
Q: How many customers do they have? What happens to them?
A: Meldium has between 200-300 customers. Their access to Meldium and service has not been impacted by the acquisition.
Q: What is Meldium’s revenue? What will be the impact on LOGM’s 2H and FY2014 revenue?
A: We are very pleased with Meldium’s initial customer traction and growth rates, though we do not expect its early revenue to have a materially impact our current Q3 or full year revenue guidance.
Q: How will this impact margins?
A: The acquisition is not expected to have an impact on margins in 2014.