Technology

Adobe spends $20 billion to acquire design platform Figma


On September 15, Adobe said it would acquire design software company Figma in a $20 billion deal paid in cash and stock.

Reacting to the news, Adobe stock fell 17%, the most since 2020.

Figma, founded in 2012, is a company that develops cloud-based design software that enables teams to interact in real-time. The company is also a direct competitor to Adobe’s XD program.

(Photo: ABC News)

At the final round of funding in 2021, Figma was valued at about $10 billion. Investors behind this start-up such as Index Ventures, Greylock Partners and Kleiner Perkins expect to generate more than 400 million in recurring revenue this year.

This means that Adobe is offering 50 times the purchase price of Figma revenue, at a time when cloud software profits have fallen significantly from last year’s record high.

The company that holds the Photoshop trademark said it will integrate some features from its products, such as illustration, photography and video technology into Figma’s existing platform.

“The greatness of the company stems from our ability to create new categories and integrate the latest technologies into our products through innovation and mergers,” said Adobe CEO Shantanu. Narayen said. “The combination of Adobe and Figma is transformative and will advance our vision of creativity and collaboration.”

It is expected that, after the agreement is completed, Figma co-founder and current CEO Dylan Field will continue to run the company, under the direct supervision of David Wadhwani, President of Digital Media Business of Figma. Adobe.

The Vinh (According to CNBC)

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