Adobe announces acquisition of Figma for $20 billion
Recently, Adobe announced that it will spend about $20 billion to acquire Figma, an online design collaboration tool platform. The transaction is expected to be completed in 2023, which will be the largest acquisition in Adobe’s history. Adobe said its mission is to change the world through digital experiences, and now that the digital economy runs on Adobe’s tools and platforms, this combination with Figma will usher in a new era of collaborative creativity.
According to Adobe’s official announcement, the transaction is a mixture of cash and stock, half in cash and half in stock. Figma’s CEO and employees will receive about 6 million additional restricted shares, which will be distributed over four years after the deal closes.
Figma was founded by Dylan Field and Evan Wallace in 2012 and pioneered the design of web products. Its online design collaboration tool platform is web-based and browser-based, allowing designers to work online and helping teams to collaborate visually, with many users.
“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 Shantanu Narayen, chairman, and CEO, of Adobe. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
At the same time, Adobe also announced the financial report for the third quarter of the fiscal year 2022, showing that revenue was $4.433 billion, a year-on-year increase of 13%, and net profit was $1.136 billion, a year-on-year decrease of 6%. While net profit was higher than expected, revenue was slightly lower than expected, with mixed blessings. Many in the industry believe that Adobe’s valuation of Figma is too high, which has attracted a lot of controversies and may put pressure on Adobe’s operations in the future.
