Adobe Set to Buy Figma for $20B to Enhance Remote Design Team Collaboration
Adobe announced last week it plans to acquire web-first collaborative design platform Figma for $20 billion in cash and stock. The two companies plan to make it easier for design teams to work together over the internet.
The deal is expected to close sometime next year, upon which Figma co-founder and CEO Dylan Field will continue to lead his company’s team but report to an Adobe executive.
Figma is a web-based design company that allows multiple people to design together online. The design solution gives creators the ability to add all stakeholders to a project, making it easier for teams to work together and stay on the same page throughout the design process.
Adobe’s products have until recently largely operated offline. While the company has made strides in adding online and collaborative capabilities to its suite of products with Adobe Creative Cloud and its Frame.io review and approval solution, it still isn’t known for them. Adding Figma will help bolster the company’s existing collaborative solutions and create better tools for teams to use in remote settings.
“Adobe’s greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions,” Shantanu Narayen, Adobe chairman and CEO, said in a statement. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
This acquisition comes after a stellar year of growth for Figma. This year the company is expected to add $200 million in net new annual recurring revenue (ARR) and surpass $400 million in total ARR. Its retention for the year is also expected to be an impressive 150 percent, according to the company.
“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,” Field said in a statement.