Adobe Inc is going to buy online design startup Figma for about $20 billion to expand its portfolio of collaboration-focused platforms geared for the hybrid-work era.
The cash-and-stock deal gives Adobe ownership of a company whose online collaborative platform for designs and brainstorming is used by firms such as Zoom Video Communications, AirBnB and Coinbase among others.
Figma introduced browser-based software design tools that allow software designers to work together in real-time, bypassing the clumsy process of saving and sending their work to collaborators using different apps.
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. The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders and the industry.
Shantanu Narayen, Chairman and CEO, Adobe, 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. The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
Approximately 6 million additional restricted stock units will be granted to Figma’s CEO and employees that will vest over four years subsequent to closing. Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan. The transaction is expected to close in 2023, subject to the receipt of required regulatory clearances and approvals and the satisfaction of other closing conditions, including the approval of Figma’s stockholders.