Adobe Inc. has entered into a definitive merger agreement to acquire Figma, its biggest rivals in the digital design space, for about US$20 billion in cash and stock.
The agreement will see Figma running autonomously with Dylan Field, Figma’s co-founder and CEO, continuing to lead the team.
The transaction expected to close in 2023, is subject to the receipt of required regulatory clearances and approvals and the satisfaction of other closing conditions, including the approval of Figma’s stockholders.
What's more, Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan.
We’re excited to share our intent to acquire @Figma. Together, we will usher in a new era of collaborative creativity. Key info: https://t.co/9wDSHPhyvE pic.twitter.com/U5SduJUVvc
— Adobe (@Adobe) September 15, 2022
Collaborative design
Both Adobe and Figma are excited about the synergistic collaborative design projects that this deal will bring together.
Adobe digital media president David Wadhwani said: “Figma has built a phenomenal product design platform on the web.
“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.”
Supporting these statements, 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.”
2. @Adobe is deeply committed to keeping @Figma operating autonomously and I will continue to serve as CEO, reporting to @dwadhwani.
We plan to continue to run Figma the way we have always have — continuing to do what's best for our community, our culture and our business. (6/9)
— Dylan Field (@zoink) September 15, 2022
About Figma
Founded by Dylan Field and Evan Wallace in 2012, Figma’s mission is to help teams collaborate visually and make design accessible to all.
Figma has a total addressable market of US$16.5 billion by 2025.The company is expected to add approximately $200 million in net new annual recurring revenue (ARR) this year, surpassing US$400 million in total ARR exiting 2022, with best-in-class net dollar retention of greater than 150%.
With gross margins of approximately 90% and positive operating cash flows, Figma has built an efficient, high-growth business, said Adobe
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.
“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
THREAD: This morning we’re announcing that @Figma has entered into an agreement to be acquired by @Adobe !
More information here: https://t.co/eqJsSlkShq (1/9)
— Dylan Field (@zoink) September 15, 2022