The concept was created by Tim Leatherman while he was holidaying in Europe. He became aware Swiss Army Knives were lacking for his heavier duty work and came up with a tool that included a strong pair of pliers, as well as other details one would be sure to find in a Swiss Army Knife: screwdrivers, a knife and a can opener.
Other companies prior to him built similar tools on a far smaller scale, but Leatherman brought multi tools in big numbers. 25 years later, Leatherman is still the market leader.
Differences with Swiss Army Knives:
The most notable difference between multi tools and Swiss Army Knives remains the pair of pliers. Some Swiss Army Knives have pliers, but they are only useful for simple jobs. A multi tool also feels very different: it is bigger, allowing you to hold it in your grasp far better. The size of multi tools could also be a disadvantage: you usually get extra tools per weight in a Swiss Army Knife. Many people have the opinion that the quality of Swiss Army Knives is unmatched in current multi tools, so that is a trade-off.
What to buy?
If you require pliers, you ideally need a multi tool. If you require knives, it boils down to personal choice, but understand that the knives in various multi tools and Swiss Army Knives are perhaps not quite as good as the best knives. People who rely on knives often carry both a knife and a multi tool.
If you require screwdrivers you will want to test different options of both multi tools and swiss army knives, since manufacturer's ideas of what is a small or a phillips screwdriver vary a lot. There is different Swiss Army Knives and multi tools that are available with bit holders.
If you need a tool for tough jobs, go with a big multi tool, such as the Leatherman Super Tool 300 or the Leatherman Surge, or even the Victorinox Swiss Tool.
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