Figma

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.

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

The transaction is expected to be accretive to Adobe’s adjusted earnings per share at the end of the third year. Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan. The company is expected to add about US$200 million in net new annual recurring revenue this year, surpassing US$400 million in total annual recurring revenue by the end of 2022, with a net dollar retention of greater than 150%, Adobe said in an investor presentation. After closing, Field will continue to lead the Figma team, reporting to David Wadhwani, president of Adobe’s digital media business. Adobe, which had been a Wall Street favorite for more than a decade, has been pummeled in the tech downturn, seeing its shares lose more than a third of their value since the start of the year. The company was valued at US$10 billion in its last funding round a year ago.

SAN FRANCISCO, Sept. 15 (Xinhua) -- Adobe on Thursday announced it has entered into a definitive merger agreement to acquire Figma, ...

Under the definitive agreement, Adobe has agreed to acquire Figma for approximately 20 billion U.S. "The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity," said Shantanu Narayen, Adobe chairman and CEO. The merger of Adobe and Figma will accelerate creativity on the web and advance product design, Adobe said.

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.

Adobe announced Thursday morning that it will acquire design software firm Figma in a deal worth about $20 billion in cash and stock.

It expects to report earnings of $3.50 per share, adjusted, above a StreetAccount forecast of $3.47 per share. It posted $4.43 billion in revenue, which matched analyst expectations of $4.43 billion. It reported earnings of $3.40 per share, adjusted, topping Refinitiv estimates of $3.33 per share. Adobe said it will integrate some of the features from its other products, such as illustration, photography and video technology, into Figma's platform. "Adobe's greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions," said Adobe CEO Shantanu Narayen. He'll report to David Wadhwani, president of Adobe's digital media business. [Microsoft employees love Figma, and it's testing the company's cozy relationship with Adobe (Aug. That means Adobe is paying in the neighborhood of 50 times revenue at a time when sales multiples for cloud software are contracting dramatically from their record highs reached last year. The company issued mixed guidance for the fiscal fourth quarter. 25)](https://www.cnbc.com/2022/08/25/figma-growing-inside-microsoft-testing-longtime-deal-with-adobe.html) [previously told CNBC](https://www.cnbc.com/2022/08/25/figma-growing-inside-microsoft-testing-longtime-deal-with-adobe.html). [Adobe](//www.cnbc.com/quotes/ADBE) [announced](https://www.businesswire.com/news/home/20220915005546/en/) Thursday that it will acquire design software firm Figma in a deal worth about $20 billion in cash and stock.

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.

Many thought the web would be vanquished by mobile and desktop apps. Figma helped the web platform win again — but now it's owned by Adobe.

[Microsoft](https://thenewstack.io/microsofts-collaborative-apps-the-web-is-the-engine/) — to thank for making the web platform so advanced today. [TechCrunch angle](https://techcrunch.com/2015/12/03/figma-vs-goliath/) was that Figma was created to “fight Adobe” (the permalink includes the phrase “figma-vs-goliath”). Although we mustn’t forget the indies, [like Igalia](https://thenewstack.io/igalia-the-open-source-powerhouse-youve-never-heard-of/) and indeed Ricardo Cabello’s Three.js. There was a time when many of us feared that mobile internet and desktop applications (from the likes of Apple and Adobe) would vanquish the web as a developer platform. Then 23-year-old Figma co-founder and CEO, [Dylan Field](https://twitter.com/zoink), said that Adobe “doesn’t understand collaboration” and the Adobe Creative Cloud is “really cloud in name only.” Fighting words, for sure… [in 2005](https://www.nytimes.com/2005/04/19/technology/adobe-buys-macromedia-for-34-billion.html). WebGL, Web Graphics Library, was especially important in Figma — and effectively made it into a Flash-like experience for users. “It’s great to see so many new faces!” the Penpot Twitter account unironically [tweeted](https://twitter.com/penpotapp/status/1570725271539707905) the following day. When Figma was launched in December 2015, the Check spike in SaaS signups and platform activity (create_file event) 🤯🤯🤯 [pic.twitter.com/kmXuazF6fd] At the end of last year, I named Figma one of my Their collective response was best summarized in a brutal tweet by the creator of Three.js, an open source 3D JavaScript framework:

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 ...

“It was always a dream of mine to be at the Gap and to bring the best product possible,” he said on “Closing Bell" on Thursday. [click here to apply](https://fortune.com/conferences/the-fortune-cfo-collaborative-chicago/) to join us in Chicago at Sepia on September 22 or [click here to apply](https://fortune.com/conferences/the-fortune-cfo-collaborative-dallas/) to join us on September 29 at The Mansion Turtle Creek in Dallas. [Vanna Krantz](https://fortune.com/2021/12/04/career-rewind-vanna-krantzs-journey-from-the-lobby-of-pwc-to-top-cfo/) was named [CFO at Grindr](https://www.businesswire.com/news/home/20220913005516/en/Grindr-Appoints-George-Arison-as-Chief-Executive-Officer-and-Vanna-Krantz-as-Chief-Financial-Officer), a social network for the LGBTQ community, effective Sept. The Gap allegedly did not meet its obligations in the companies’ agreement, and Ye wasn’t able to set the prices he wanted on his products, Lafouge worked at the Boston Consulting Group in the strategy consulting sector in Europe and South America. [designer tweeted](https://twitter.com/erikdkennedy/status/1570403681761374209): “Figma could’ve built tools to compete—and win—with every Adobe product in the suite. Figma’s technology platform will “accelerate our R&D roadmap, including the delivery of our Creative Cloud technologies on the web, which will allow Adobe to focus and manage our future R&D investments,” Durn said on the call. Seventy-six percent of respondents said digital trust is essential to digital transformation, and 82% said digital trust would be even more important in five years; but just 29% offer staff digital trust training. “In years one and two after the closing, the transaction will be dilutive to Adobe’s Non-GAAP EPS, and we expect it to break even in year three and accretive at the end of year three,” Durn said. “It’s not unprecedented for Adobe to purchase a dynamic competitor,” Jay Vleeschhouwer of Griffin Securities said on the call. And collaborators can’t work in the file at the same time. The transaction, which is the company’s largest acquisition, is expected to close in 2023, pending regulatory approvals, Adobe CFO Dan Durn said.

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.”

The news yesterday that Adobe is acquiring Figma is a development that makes a lot of sense.

But Forrester believes the acquisition will drive even more venture capital to flow to start-ups that are design-centric (like Airbnb and Instagram) or that themselves create tools and platforms that enable strong design work — a key pillar for great experiences for users (customers, employees, and others) that drive growth and loyalty. Wall Street disagreed yesterday (Adobe’s stock price had its largest drop in 12 years on the news) because few financial analysts understand how deeply good design affects the quality of experiences. Although Adobe entered that fray last year, with this acquisition it’s recognizing that Figma was far ahead, and that joining forces was the best way to catch up. And its Creative Cloud suite offers products for other key aspects of what design teams do that Figma does not do, such as Illustrator and Photoshop, as well as rich digital asset libraries to build on. It’s been browser-based from its inception and offers lots of “multiplayer” features specifically targeted at teams working together. Adobe’s expertise in machine learning (branded as Sensei) and automation embedded in various features across its products will help supercharge much of Figma’s rich and widely praised toolset.