Adobe (ADBE) to acquire design software firm Figma for $20 billion
Figma has agreed to be acquired by Adobe for $20 billion because we can't have nice things.
Adobe has announced that it has agreed to acquire collaborative design platform Figma for $20 billion of cash and stock. The company stated that "the combination of Adobe and Figma will usher in a new era of collaborative creativity." Adobe also reported their Q3 2022 earnings results with EPS of $3.40/share beating expectations of $3.33/share, and revenues of $4.43 billion coming in-line with Wall Street's projections. The company did provide somewhat disappointing revenue guidance for Q4 2022, which paired with today's Figma deal has ADBE stock trading down over 16% today.
Source: TC-2000
“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 CEO, Adobe. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
“Figma has built a phenomenal product design platform on the web,” said David Wadhwani, president of Adobe’s Digital Media business. “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.”
"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 Dylan Field, co-founder and CEO, Figma.
Figma was founded in 2012 by Dyland Field and Evan Wallace. The company's service is known for providing collaborative design solutions on a web-based client. Figma currently operates with tremendously high gross margins of 90% and is likely to grow going forward now that Adobe is here to accelerate revenue growth.
Here are the details of the $20 billion deal:
Under the definitive agreement, Adobe has agreed to acquire Figma for approximately $20 billion, comprised of approximately half cash and half stock, subject to customary adjustments. Approximately 6 million additional restricted stock units will be granted to Figma’s CEO and employees that will vest over four years subsequent to closing. Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan. 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.
Upon the closing of the transaction, Dylan Field, Figma’s co-founder and CEO, will continue to lead the Figma team, reporting to David Wadhwani, president of Adobe’s Digital Media business. Until the transaction closes, each company will continue to operate independently.
Source: Figma
While it sort of stinks to see such a useful product and viable competitor like Figma get gobbled up by a much larger company, it appears that Adobe plans to let the company continue to operate on its own.
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replyAsif Khan posted a new article, Adobe (ADBE) to acquire design software firm Figma for $20 billion
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Adobe acquiring Figma for $20b
https://www.theverge.com/2022/9/15/23354532/adobe-figma-acquisition-20-billion-official-
Noooooooooooooooooo
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I do love Photoshop and Lightroom but its stupid Cloud client sucks ass.
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Still not as bad as The Verge's new logo font, am i rite???
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How will we design the new design tool without FIGMA??
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My company merged with a competitor and shit canned the competing tool we were building. That competing tool was a few years behind, but also a much better thought out tool that actually integrated with our other tools.
The one we merged with got hacked, still lacks features of the old one, took forever to work on the same login and still doesn’t entirely, and the full dev team left. Great merger.-
This isn’t exactly the case with FIGMA and Adobe XD
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Amazing change one letter and it goes from a childish meme to a $20B company.
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It's Merge Day!
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Why people continue to give Adobe money is beyond me. I guess Adobe Illustrator is pretty good but their legacy software such as Adobe Acrobat tarnishes any respect I could have for them.
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I know how to use their tools and switching would be annoying. That's about it.
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Maybe I'm just bitter about Adobe's tool (or tools) for PDF creation. You had to manually position everything with absolute positioning. You can select several things, but you can't select several elements in the PDF based on some common attribute like the number of inches from the left side of the document.
Editing a PDF with any complexity is a huge pain using tools from Adobe.-
true.
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Also this thread made me realize that I haven't used any Adobe apps much in months. Cancelled my CC sub.
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Good, good I finally convinced somebody to stop sending money to Adobe.
There is good software out there but usually Adobe doesn't have anything to do with it.
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has to be because they had no compelling reason to sell, and adobe had every reason to want them off the market / in the fold
i don't think adobe really had a great answer to figma, and i have no belief they could have built a viable competitor. figma is a sincerely impressive technical feat. the performance they've squeezed out of browsers is wild and imo they are one of the frontrunners of heavyweight + performant web applications.
had to pay a premium to get them to fold their cards for sure-
I mean browsers have been around for 30+ years and they started pushing web apps not too long after. Given the software and hardware progress since, I would hope someone could squeeze performance out of browsers, it just still sucks as an application platform in general, performant or no.
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Ehhh, web applications in the real application sense of the word have only really been around for maybe a decade. The lessons and insights to build well in that platform have thus been developing and I think always suffered due to the differences between browser APIs / capabilities that have only really recently begun to converge upon a good standard.
Take that into consideration against the backdrop of actively hostile entities like Apple trying to pull mindshare away from web applications as a means to develop strong first-party tooling and it's been an uphill battle.
The power has been there but it really does take exceptional engineers to build sincerely complex multiplayer applications in web. So many companies throw junior talent at front ends and as such doom the apps to shit performance with no hope of ever achieving 60 hz rendering etc.
Figma is a shining example of what you can accomplish with web applications and this 20 billion dollar acquisition serves as a signal to leaders of engineering organizations around the world that it's serious, worthwhile technology.
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Vector Figma
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