In a major development in the digital design world, Adobe Inc. has bought the design software company Figma in a deal valued at about $20 billion. With this move, Adobe has wiped out its biggest rivals in the realm.
— Adobe (@Adobe) September 15, 2022
Adobe, putting all the rumors to rest, announced the news in a tweet on Thursday. Both digital design companies are looking forward to working on advancing product design and reimagining creative segments beyond product design together. “Together, our teams bring together amazing expertise in core creative technology and a platform for web-based, collaborative applications, ” Adobe said in its blog.
Adobe acquires Figma
The announced deal is a mix of half cash and half stock according to a Bloomberg report, marking it as the biggest ever takeover of a private software company. Another 6 million will be allocated for restricted stock for Figma CEO and employees. Reports suggest that Adobe would be acquiring a loan to tide over the purchase of Figma and has downsized its forecast for the next quarter.
Figma was founded by Dylan Field and Evan Wallace in 2012 and has pioneered product design since then. Users liked the simplicity of Figma as a design tool compared to Adobe and also the modern methods used for their products. The software’s usage saw a jump during the pandemic as more people worked remotely as it allows customers to collaborate on software.
Figma has over 4 million people users and is backed by companies including venture capital firms Kleiner Perkins, Index Ventures and Greylock Partners. Field is expected to stay in Figma and drive its business for the time being.
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.”
Users as well as investors are concerned as to how Adobe would build the bridge between Figma and Adobe so that users can get the maximum from both products.
“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.