Remote access specialist LogMeIn announced today that it has acquired password management software maker LastPass for $110 million in cash. An additional $15 million in cash will be available to equity holders and certain LastPass employees contingent upon it meeting certain performance goals in the two-year period following the deal's close.

A little over a year ago, LogMeIn purchased identity management specialist Meldium for $15 million. The company said that in the near-term, both Meldium and LastPass product lines will continue to be supported. Its long-term plan, however, is to create a single identity management offering based on the LastPass brand.

LogMeIn Chairman and CEO Michael Simon said they believe the transaction instantly gives them a market leading position in password management while also providing a highly favorable foundation for delivering the next generation of identity and access management solutions to individuals, teams and companies.

LastPass launched in 2008 as a freemium password manager. The idea is that instead of having to remember a myriad of passwords, customers can use LastPass to auto-fill login credentials whenever they visit a site that requires authorization.

Credentials stored with LastPass are encrypted and protected by a master password. The company launched an auto-password change function for beta users late last year and over the summer, extended its service to mobile devices free of charge.

LogMeIn said the deal is expected to close in the coming weeks.