BY Fraser Tennant
In a combination that will usher in a new era of collaborative creativity, multinational computer software company Adobe is to buy software design start-up Figma in a transaction valued at $20bn.
Under the terms of the definitive merger agreement, Adobe’s acquisition of Figma will be comprised of approximately half cash and half stock, subject to customary adjustments. The cash consideration is expected to be financed through cash on hand and, if necessary, a term loan.
Drawing on 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.
“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 chief executive of Adobe. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
Once combined, it is expected that 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. 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 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,” added Dylan Field, co-founder and chief executive of Figma.
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 closing, Mr Field will continue to lead the Figma team, reporting to David Wadhwani, president of digital media business at Adobe. For the moment, each company will continue to operate independently.
“Figma has built a phenomenal product design platform on the web,” concluded Mr Wadhwani. “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.”
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