Photoshop maker Adobe said it would buy Figma in a cash-and-stock deal that valued the online design startup at about $20 billion. Adobe would offer 50 percent of the deal value in cash and the balance in stock.
Figma, founded by Dylan Field and Evan Wallace in 2012, offers product design on the web. Figma has attracted millions of designers and developers and a loyal student following.
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“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity,” said Shantanu Narayen, chairman and CEO, Adobe.
Figma’s web-based, multi-player capabilities will accelerate the delivery of Adobe’s Creative Cloud technologies on the web, making the creative process more productive and accessible to more people.
Adobe and Figma will benefit all stakeholders in the product design process, from designers to product managers to developers, by bringing powerful capabilities from Adobe’s imaging, photography, illustration, video, 3D and font technology into the Figma platform.
“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 has an addressable market of $16.5 billion by 2025. The company is expected to add $200 million in net new ARR this year, surpassing $400 million in total ARR exiting 2022, with net dollar retention of greater than 150 percent. Figma has gross margins of approximately 90 percent and positive operating cash flows.
The transaction is expected to close in 2023.
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.