Apple may be considering acquisition of 1Password
After signing a contract to roll it out to all employees 🔒
Posted on July 10, 2018 3:55 PM.
Apple acquires an average of 15 to 20 companies a year, according to CEO Tim Cook. Of that number, we only hear about a couple, as most of these acquisitions or aqcui-hires are not consumer-facing, nor disclosed. However, we have exclusively learned that Apple is planning an interesting partnership and a potential acquisition of AgileBits, maker of the popular password manager 1Password.
Apple is planning on rolling out 1Password to all of their 123,000 employees, including retail, and employees will be on the family plan, which gives a license to up to five members of their family.
While Apple is said to have a custom rate for this incredibly large deal with AgileBits, we haven’t been able to confirm what the company is paying. A standard family license goes for $60/year. If the company hypothetically secured a 50% discount, Apple would be paying around $2.5 million a year for the deal.
Whatever it is, it's a big contract. 1Password executives paid themselves bonuses in the six-figures, and gave all their employees bonuses too. The contract with 1Password is a little different than their other enterprise contracts, given Apple's size and security requirements. Rather than use the AgileBits version that includes syncing through AWS, Apple will use the standalone version, so it can all be synced through iCloud. Additionally, Apple requires a four-hour maximum response time for support requests.
AgileBits wasn’t even prepared for this kind of influx of users, the company turned to a third-party call management service that will help to provide phone support in order to fulfill the contractual requirements of the deal.
1Password is used by many consumers and businesses, and generates between $5M-$10M in revenue per year. If Apple were to acquire 1Password, it could be for a 2x-3x multiple of that figure. 1Password denied the rumors of an acquisition, though Apple could be testing the waters 🤔
Jeff Shiner, the CEO of AgileBits, was overheard talking about the “Apple acquisition” in the glass conference room in the company’s Toronto office recently, but we have no firm details on what the context was or any specifics of the potential deal.
In early June, 1Password teased a password autofill feature coming to iOS 12. We can't wait for the new integration, and maybe even more 👀
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