Adobe (NASDAQ: ADBE) is set to acquire design software firm Figma in a USD20 Billion cash and stock deal. Figma, which creates cloud-based design software, was valued at about USD10 Billion during its last funding round in 2021.
“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,” claims Adobe. “The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders, and the industry.”
Figma, which is backed by Index Ventures, Greylock Partners, and Kleiner Perkins, is expected to bring in USD400 Million in annual recurring revenue this year, according to sources familiar with the company. Adobe corroborated that Figma’s ARR will exceed USD400 Million by the end of 2022.
In an interview, Adobe Chief Executive Shantanu Narayen detailed that everything we view on screens begins as a concept, which Figma’s FigJam product permits people to create collaboratively and remotely.
“When you go to engage with a mobile application on the web, somebody has to design that and then translate that into code,” he said. “That’s what Adobe and Figma can do.”
Adobe share fell over 14% in early morning trading amid the news.