Adobe Inc., a US-based provider of computer software, announced on Thursday that it has agreed to acquire software design startup Figma for $20 billion in cash and stock.
Figma is a collaborative web application for interface design that enables users to create software. It was founded in 2012 by Brown University graduates Dylan Field and Evan Wallace.
According to Adobe, “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”.
Following the transaction, Field will continue as Figma’s CEO.
The startup company, which was valued at $10 billion in its most recent funding round in 2021, earned recognition during the global coronavirus outbreak in 2019 and has since broadened its customer base to include people creating lightweight games, maps, and presentations in addition to software designers at big businesses like Airbnb Inc., Google, Herman Miller, and Kimberly-Clark Corp., according to Bloomberg.
“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity,” Adobe’s Chairman and Chief Executive Officer Shantanu Narayen said.
Based on Adobe’s statement, “the combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders and the industry”.
“With Adobe’s and Figma’s expansive product portfolio, the combined company will have a rare opportunity to power the future of work by bringing together capabilities for brainstorming, sharing, creativity and collaboration and delivering these innovations to hundreds of millions of customers,” according to Adobe’s statement.