LogMeIn, the cloud-based software maker has purchased start-up LastPass, the password managing service, for a whopping $125 million.

Per the deals' terms, LogMeIn will shell out $110 million of the amount in cash. The software maker will set aside $15 million for contingent payments to key employees and equity holders in the event they meet a major landmark in the coming two years or for retention purposes. The deal is anticipated to close in the ensuing weeks.

LastPass is a single-sign-on (SSO) service and LogMeIn hopes that the deal will give a fillip to the company's place in the IAM i.e. identity and access management sector. The move will also enable the LastPass brand to grow further and establish its identity.

"We're thrilled to announce that we're joining LogMeIn. As one of the world's leading SaaS companies, we can't imagine a better team to align with our values and product-driven mission. With their experience in growing successful brands like join.me, we're excited to join LogMeIn in delivering the next generation of identity and access management for individuals, teams and companies, with LastPass at the forefront," noted Joe Siegrist, LastPass' CEO in a blog post.

Siegrist let on that post LastPass' acquisition by LogMeIn, the former will be releasing new features, as well as an update to the password manager to help propel the service forward and bolster its progress. LastPass wants to be available to millions of people who "struggle with passwords."

Statistics reveal that nearly 80 percent of cloud-based services and apps have monitored, sensitive or private information. Moreover, nearly 64 percent of people who use the Internet deploy the same password for most websites that require the protocol.

LogMeIn is optimistic that the acquisition will aid in bringing forth novel methods for both businesses and individuals that will offer safe access to sensitive data. It shares the vision of better security for users and companies with LastPass.

LogMeIn has a long-term vision of merging LastPass with a company which acquired in 2014 - Meldium.

LastPass customers who use the Free, Premium and Enterprise service will not notice any major change in the product and its policies.

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