Image credit: figma.com
Adobe plans to acquire Figma, a leading web design collaborative platform, for an estimated P20 billion in cash and stock.
The announcement was made by Adobe last September 17, saying that it has entered into a definitive acquisition agreement to merge Figma into its fold.
According to Adobe, the move will “usher in a new era of collaborative creativity.” Figma is a direct competitor of Adobe XD, the software giant’s own web design tool.
It is envisioned that by joining forces, the two companies will reshape the future of creativity and productivity, advance web creativity, accelerate product design, and further inspire the global communities of designers and developers.
In a statement, Adobe Chairman and CEO Shantanu Narayen said: “Adobe’s greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions.”
He added that “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
“Figma has built a phenomenal product design platform on the web,” noted David Wadhwani, president of Adobe’s Digital Media business. “We look forward to partnering with their incredible team and vibrant community to accelerate our joint mission to reimagine the future of creativity and productivity.”
For his part, Figma co-founder and CEO Dylan Field said, “With Adobe’s amazing innovation and expertise, especially in 3D, video, vector, imaging and fonts, we can further reimagine end-to-end product design in the browser, while building new tools and spaces to empower customers to design products faster and more easily.”
The agreement is expected to be finalized in 2023 after it completes the required regulatory clearances, satisfies closing conditions, and gets the approval of Figma’s Board.
The buyout amount will be comprised approximately of half stock and half cash. Adobe expects to finance its acquisition with cash on hand and, if needed, through a term loan.
Once it becomes part of Adobe’s corporate umbrella, Figma is expected to operate autonomously and find ways to hasten its growth. Currently, Figma is on course to hit over $400 million in total annual recurring revenue for this year.
