Adobe to acquire collaborative design platform Figma for $20 billion

Adobe announced today that it has agreed to acquire collaborative design platform Figma for $20 billion, which will be paid in half cash and half stock.

‘’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,’’ Adobe said in a press release. ‘’The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders and the industry.’’

Founded in 2012 by Dylan Field and Evan Wallace, Figma is one of the most popular collaborative design tools allowing users to create interfal designs for their web and mobile apps. The companies that have used its solutions include Netflix, Stripe, Coinbase, Twitter, Zoom and many others. According to Adobe’s statement, Figma’s annual recurring revenue (ARR) is expected to surpass $400 million by the end of 2022, according to Adobe’s statement.

Shantu Narayen, Adobe’s Chief Executive Officer & Chairman, 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.”

Following the merger deal, which is expected to close next year, Figma’s Co-founder and Chief Executive Officer Dylan Field will continue leading the Figma team.

“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,” said Field.

Last year, Adobe also acquired video review and collaboration platform Frame.io for $1.28 billion.