Figma

Adobe Inc. agreed to buy software design startup Figma Inc. in a deal valued at about $20 billion to help it expand tools for creative professionals.

Adobe shares fell 13% as the market opened in New York, the biggest decline in more than two years. [announced](/news/terminal/RI92POMEQTXC) by Adobe, which is a mix of half cash and half stock, [confirms](https://www.bloomberg.com/news/articles/2022-09-15/adobe-is-said-to-near-deal-to-buy-online-design-startup-figma) an earlier Bloomberg report and would mark the biggest ever takeover of a private software company, according to data compiled by Bloomberg. [Adobe Inc.](/quote/ADBE:US) agreed to buy software design startup [Figma Inc.](/quote/1349863D:US) in a deal valued at about $20 billion to help it expand tools for creative professionals.

San Francisco-based Figma, founded by Dylan Field and Evan Wallace in 2012, allows software developers and designers to collaborate remotely and design ...

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The deal is part of Adobe's push to expand its tools for virtual collaboration, design and remote production.

“Figma has built a phenomenal product design platform on the web,” said David Wadhwani, president of Adobe’s Digital Media business. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” Founded by Dylan Field and Evan Wallace in 2012, Figma pioneered product design on the web.

Adobe has announced it has purchased Figma, a popular design platform and Adobe XD competitor, for $20 billion in cash and stock.

“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” Experts believe that Adobe paid 50 times too much for the company when the purchase price is compared to Figma’s annual revenue. Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan. The company says the merger will “usher in a new era of collaborative creativity.” Until the transaction closes, each company will continue to operate independently. Since it was founded in 2012, Figma has amassed a following of millions of designers, developers, and students.

$20 billion Figma deal is a historic coup for startup investors in an otherwise miserable year · Just over a year after raising money at a $10 billion valuation, ...

This really was more a question of what is the best way to achieve the goal of company, which is to democratize tools for design and creation across the globe." "Figma is actually one of these rare companies that has achieved incredible escape velocity," said Narayen, Adobe's CEO since 2007. Before that, the biggest was Macromedia for $3.4 billion in 2005. [BVP Nasdaq Emerging Cloud Index](https://cloudindex.bvp.com/), forward multiples have fallen to just over 9 times revenue from about 25 in February 2021. "This was a significant threat to Adobe," Lo Toney, founding managing partner of Plexo Capital, which invests in start-ups and venture funds, told CNBC's "TechCheck" on Thursday. They include Durable Capital Partners and "The company was IPO-able. venture-backed software M&A was tracking to its worst year since 2017." Tomasz Tunguz of Redpoint Ventures wrote in a Investors in the 2021 round doubled their money. Figma's cloud-based designed software has been a growing headache for Adobe over the last few years. There was no other bidder out there driving up the price, according to a person familiar with the matter who asked not to be named because the details are confidential.

Investors unsure about collaboration acquisition. Adobe agreed on Thursday to acquire Figma, whose products are used by software developers to collaborate, for ...

Adobe is one of the most acquisitive companies in the Silicon Valley and has bought numerous businesses over the years, as it has looked to defend market share against competitors such as Microsoft. Many of them said they understood the rationale around the strategy but argued Adobe overpaid for a company that was valued at about US$10 billion in a private fundraising round a little over a year ago. Adobe agreed on Thursday to acquire Figma, whose products are used by software developers to collaborate, for US$20 billion (A$30 billion), sparking investor concerns about the rich price tag that led to a drop of more than US$30 billion in the market value of the Photoshop maker.

Adobe surprised the IT world early Thursday morning with the unveiling of a plan to acquire Figma, a developer of web-first collaborative design technol...

That included subscription revenue of $4.13 billion, up 12 percent; product revenue of $126 million, up 6 percent; and services and other revenue of $179 million, up 13 percent. Adobe also said Figma has gross margins of about 90 percent and a positive operating cash flow. Figma generated about $75 million in revenue in 2020, and was slated to double that in 2021, according to Forbes. However, according to PitchBook Data, Figma in June 2021 raised $200 million from investors, giving it a valuation of $10 billion, meaning that Adobe plans to acquire the company for double its valuation of just a year ago. However, not everyone agreed with Adobe and Narayen’s rosy picture of the future. The US$20-billion deal, expected to close next year, actually helps Adobe reel in one of its major competitors in the user experience market.

Rimer, a partner at the venture capital firm Index Ventures, invited Figma's co-founder and chief executive officer, Dylan Field, to dinner and ordered a bottle ...

Field, 30, is now of legal drinking age in the US, and both he and Rimer stand to make a lot of money from the sale. Rimer went ahead, he recalled, and ordered the Pinot anyway. [Index Ventures](/quote/1805Z:SW), invited Figma’s co-founder and chief executive officer, Dylan Field, to dinner and ordered a bottle of wine to celebrate the deal.

Pioneer of collaborative product design on the Web scooped up after hitting $10bn valuation last year.

But in speaking to CMO’s sister publication, Computerworld, IDC research vice-president of collaboration and communities, Wayne Kurtzman, described the deal as a potential coup for Adobe. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” The transaction is due to close in 2023. Until the transaction closes, each company will continue to operate independently. The companies bring together Adobe’s portfolio of Creative Cloud solutions with Web-based product design tools, collaboration and multi-player workflows. In total, the company had raised $332.9 million, according to Crunchbase.

Cash and stock deal will see Figma become part of the broader Adobe ecosystem, adding collaborative software development to the design vendor's list of ...

The company was founded in 2012, and Adobe said that it has since developed a dedicated following among developers. Adobe said that it expects the transaction to close sometime in 2023. Adobe has announced that it would pay US$20 billion in cash and stock to acquire Figma, a web-based collaborative design platform.

Adobe Inc will buy startup Figma for about $20 billion in its biggest deal, the Photoshop maker said on Thursday, bulking up on applications that support ...

Either company will have to pay a termination fee of $1 billion if they scrap the deal. Distribution across machines running on Windows helped Adobe gain ubiquity and the companies also sync their products across platforms. It's not a sustainable solution." The company had cash and cash equivalents of $3.87 billion as of Sept. Some analysts pointed to the size of the deal that could require Adobe to raise debt. Adobe has sharpened its focus on the collaboration tools space in recent years through acquisitions.

Adobe Inc. has entered into a definitive merger agreement to acquire Figma, its biggest rivals in the digital design space, for about US$20 billion in cash ...

“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” We plan to continue to run Figma the way we have always have — continuing to do what's best for our community, our culture and our business. The agreement will see Figma running autonomously with Dylan Field, Figma’s co-founder and CEO, continuing to lead the team.

Investors have argued that Adobe overpaid for a company that was valued at about $10-billion in a private fundraising a little over a year ago.

Either company will have to pay a termination fee of $1-billion if they scrap the deal. It added that Figma’s total addressable market would reach $16.5-billion by 2025 across design, whiteboarding and collaboration. “This partnership will give Figma users access to Adobe’s photography, illustration and video technology, all in one place. Adobe investors were less impressed, driving down the company’s stock by 17% on Thursday. Adobe is one of the most acquisitive companies in Silicon Valley and has bought numerous businesses over the years, as it has looked to defend market share against competitors. David Wagner, portfolio manager and equity analyst at Aptus Capital Advisors, which owns a 1.5% stake in Adobe, said Figma’s annual recurring revenue (ARR) was $400-million, a tiny fraction of Adobe’s $14-billion, making it an unreasonable for Adobe to pay the equivalent of 11% of its market value for 2.8% more ARR.

Adobe's $20 billion Figma deal raises eyebrows and rings antitrust bells ... Turning foes into friends. ... A burgeoning design startup will now be owned by the ...

[debuted in 2016](https://www.forbes.com/sites/alexkonrad/2021/08/10/how-figma-became-designs-hottest-startup-valued-at-10billion/?sh=6f50f1a3726e), it’s been touted as an Adobe killer for being [more efficient, collaborative, and affordable](https://www.protocol.com/workplace/adobe-figma-dylan-field-user-reactions). Industry insiders, however, don’t understand the dumping. [pointed out](https://twitter.com/Vaskatta/status/1570561388581617664). 15, Adobe announced it was buying the San Francisco-based firm in a [$20 billion half-cash and half-stock deal](https://news.adobe.com/news/news-details/2022/Adobe-to-Acquire-Figma/default.aspx). [tweeted](https://twitter.com/amaldorai/status/1570604636524126210). The deal comes “with access to Adobe’s technology, expertise and resources in the creative space,” CEO Dylan Field [being unaffordable](https://twitter.com/4erepawko/status/1570436634419789826) and [clunky](https://twitter.com/andybudd/status/1570391834622562305). [antitrust issues](https://techcrunch.com/2022/09/15/adobe-is-buying-figma-for-20b-taking-out-one-of-its-biggest-rivals-in-digital-design/) come up and the deal doesn’t go through? 15 blogpost](https://www.figma.com/blog/a-new-collaboration-with-adobe/). [Adobe’s Instagram](https://twitter.com/nbashaw/status/1570419021211901953).” [plummeted 16%](https://seekingalpha.com/news/3883076-adobe-drops-11-on-reaction-to-20b-figma-deal-and-mixed-outlook) on the news, as well on its [mixed bag earnings results](https://www.zdnet.com/article/adobe-q2-a-mixed-bag-as-revenue-falls-short-of-estimates/). [Field’s tweet](https://twitter.com/zoink/status/1355173534390075394?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1355173534390075394%7Ctwgr%5E37eb9a89cff06141b271038df7c523973f593415%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fkinja.com%2Fembed%2Finset%2Fiframe%3Fautosize%3D1id%3Dtwitter-1355173534390075394) from Jan 29, 2021

Adobe announced a deal to pay $20 billion to for a $400 million software company. Here's why that big bet might payoff.

According to Danny Rimer, a partner at Index Ventures which invested in Figma in 2013, “The company was IPO-able. As Narayen said, “Software follows a sort of S curve: performance eventually moves sideways if you do not invest in the right opportunities.” Field — who will report David Wadhwani, president of Adobe’s digital-media business — said that the acquisition will help Figma move faster. Were that growth rate to slow down to 80% a year between 2023 and 2028, the deal could add $13.6 billion to Adobe’s top line five years after the deal closes. The culture of the two companies strike me as compatible. Together, Adobe and Figma will reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers.” For example, Figma has four million subscribers — two-thirds of whom users aren’t among Adobe’s core designer customers, according to the Journal. Based on the relative scale of the two companies, that price looks exorbitant. Figma’s revenue is expected to grow at 100% between 2021 and 2022. According to the company, “Figma has attracted a new generation of millions of designers and developers and a loyal student following. As CNBC noted, “It’s cheaper (there’s even a free tier), easier to use, collaborative and modern, and has been spreading like wildfire among designers at companies big and small.” Depending on how well Adobe integrates the two companies, their combined competitive advantages could result in faster top-line growth for Adobe.

Prior to announcing its intent to buy Figma for $20 billion on Thursday, Adobe's largest deal was its $4.75 billion Marketo acquisition in 2018.

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The tech giant has entered into a definitive merger agreement to acquire Figma, a web-first collaborative design platform—and an Adobe competitor—for ...

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Multimedia software products maker, Adobe, buys rival Figma in a deal that expands its portfolio of collaboration tools.

“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” “Adobe is deeply committed to keeping Figma operating autonomously.” “The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders, and the industry.”