Adobe to Acquire Figma in a Deal Worth $20 Billion
Figma has competed with Adobe XD and other graphic design apps for years, but it will soon be part of Adobe.
Source: Google images
Main Highlights:
In a transaction for nearly $20 billion in cash and shares, Adobe said on Thursday that it would buy design software company Figma.
The corporation also posted results for the third quarter of its fiscal year.
Figma is a web-based design application that allows artists to interact online.
Figma will continue to operate independently following the acquisition.
Adobe said today that it has entered into a formal merger agreement to purchase Figma, a premier web-first collaborative design platform, for $20 billion in cash and equity. Adobe and Figma working together will bring in a new age of collaborative innovation.
The purpose of Adobe is to improve the world via digital experiences. Today, the digital economy is powered by Adobe’s tools and platforms, and the company’s inventions have impacted billions of people across the world. Adobe continues to develop and modify categories, from changing image and creative expression with Photoshop to pioneering electronic documents with PDF to inventing the digital marketing category with Adobe Experience Cloud.
Figma’s purpose is to make design accessible to anyone and to enable teams interact graphically.
The business, founded in 2012 by Dylan Field and Evan Wallace, pioneered product design on the web. Through multi-player processes, smart design tools, and a robust, extendable developer ecosystem, it is now enabling everyone who creates interactive mobile and online apps to contribute. Figma has drawn a new generation of millions of designers and developers, as well as a devoted student base.
Adobe and Figma will work together to envision the future of creativity and productivity, accelerate digital innovation, promote product design, and inspire global communities of artists, designers, and developers. The merged business will have a vast, rapidly expanding market potential as well as the capacity to create considerable value for consumers, shareholders, and the industry.
Transaction Specifics.
Adobe has agreed to purchase Figma for around $20 billion, consisting of approximately half cash and half shares, subject to usual adjustments. Figma’s CEO and staff will receive about 6 million extra restricted stock units, which will vest over a four-year period following the closure. Adobe anticipates that the cash consideration will be funded with cash on hand and, if necessary, a term loan. The acquisition is scheduled to conclude in 2023, subject to regulatory clearances and approvals and the fulfilment of other closing conditions, including Figma shareholder approval.
Dylan Field, co-founder and CEO of Figma, will continue to manage the Figma team when the deal is completed, reporting to David Wadhwani, president of Adobe’s Digital Media division. Each firm will continue to function independently until the transaction is completed.
Reimagining the Future of Creativity and Productivity
Adobe and Figma both have a strong desire to help individuals and teams become more creative and productive. With the combined company’s expansive product portfolio, Adobe and Figma will have a once-in-a-lifetime opportunity to power the future of work by bringing together capabilities for brainstorming, sharing, creativity, and collaboration and delivering these innovations to hundreds of millions of customers.
Increasing web-based creativity
Creators are presently faced with the task of producing an expanding volume of content while working closely with an increasing number of stakeholders. The web has become a ubiquitous platform, making it easier for teams to collaborate on projects.
The web-based, multi-player capabilities of Figma will speed the web distribution of Adobe’s Creative Cloud technologies, making the creative process more productive and accessible to more people.
Product design advancement
Because digital applications are at the heart of our personal and professional lives, the product design sector is seeing rapid expansion. By incorporating significant features from Adobe’s image, photography, illustration, video, 3D, and typeface technologies into the Figma platform, Adobe and Figma will benefit all stakeholders in the product design process, from designers to product managers to developers.
Inspiring and strengthening the community of designers and developers
Adobe’s thriving creative community has been a driving factor in the company’s ongoing innovation. With their big and expanding ecosystem, Figma’s dedicated community creates and shares everything from lessons to templates to plug-ins. The merging of the Adobe and Figma communities will bring designers and developers closer together, paving the way for the future of collaborative creativity.
By 2025, Figma expects to have a total addressable market of $16.5 billion. With best-in-class net dollar retention of more than 150 percent, the firm expects to add about $200 million in net new ARR this year, topping $400 million in total ARR by the end of 2022.
Figma has established an efficient, high-growth firm with gross margins of about 90% and positive operational cash flows.
Disclosure of Forward-Looking Statements
Each of the forward-looking statements in this news release is subject to risks and uncertainties that might cause actual outcomes to differ considerably from those stated. Among the factors that might create or contribute to such discrepancies are, but are not limited to: Expected revenues, cost savings, synergies, and other benefits from the proposed transaction, such as Adobe’s ability to enhance Creative Cloud by adding Figma’s collaboration-first product design capabilities and the effectiveness of Figma’s technology, may not be realised within the expected time frames or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee integration, may not be realised within the expected time frames or at all.
The businesses of Adobe or Figma may be disrupted as a result of transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, other business partners, or governmental entities; the possibility that the proposed transaction will be more expensive to complete than anticipated, including as a result of unexpected factors or events; and the diversion of management’s attention from ongoing business operations and opportunities. The risks disclosed in this news release and in Adobe’s filings with the United States Securities and Exchange Commission (the “SEC”) should be carefully examined.
These forward-looking statements, which speak only as of the date they are made, should not be relied on unduly. Except as required by law, Adobe and Figma make no commitment to publicly disclose any updates to the forward-looking statements or to reflect events or circumstances that occur after the date of this news release.
About Figma
Figma is a design tool for collaborative product development teams. Figma, which was born on the web, assists teams in brainstorming, designing, and building better things from start to end. Figma makes the design process faster, more effective, and entertaining while keeping everyone on the same page, whether it’s consolidating tools, streamlining workflows, or working across teams and time zones.
Through digital experiences, Adobe is transforming the world. In the United States and/or other countries, Adobe, Creative Cloud, Document Cloud, and the Adobe logo are either registered trademarks or trademarks of Adobe (or one of its subsidiaries). All other trademarks belong to their respective owners.
Categories: Featured, News-Curated, Productivity
Tags: adobe to aquire figmaapp developmentfigma
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