Thursday, December 8, 2022

Adobe to buy Figma in a deal worth $20 billion

Immigration News

Mehr Ali Altaf
Mehr Ali Altafhttps://www.khaama.com
Mehr Ali is a young bilingual journalist from Afghanistan working for the English language version of Khaama Press online. His main responsibility include researching and writing news reports for the sports, tech and entertainment sections.

Adobe announced Thursday that it will acquire design software firm Figma in a deal worth about $20 billion in cash and stock.

Figma, founded in 2012, creates cloud-based design software that allows teams to collaborate in real time. It competes head-to-head with Adobe’s XD program.

The company was valued at $10 billion in its last funding round in 2021.

Figma, whose backers include the likes of Index Ventures, Greylock Partners and Kleiner Perkins, is expected to generate more than $400 million in annual recurring revenue this year, sources familiar with the company’s financials previously told CNBC. Adobe confirmed Figma’s ARR will surpass $400 million exiting 2022.

Figma was first founded 10 years ago by Dylan Field and Evan Wallace, and the collaborative design platform has become key for many businesses in recent years.

That means Adobe is paying in the neighborhood of 50 times revenue at a time when sales multiples for cloud software are contracting dramatically from their record highs reached last year. For the top cloud companies in the BVP Nasdaq Emerging Cloud Index, forward multiples have fallen to just over 9 times revenue from about 25 in February 2021.

Figma is all about the web, which is something Adobe and other rivals have been struggling to compete with. Adobe now plans to combine its own community with Figma, and it’s likely that will involve bundling Figma products and services into Adobe Creative Suite at some point in the future.

Until then, Figma will remain untouched for now. “We plan to continue to run Figma the way we have always run Figma — continuing to do what we believe is best for our community, our culture and our business,” explains Dylan Field, co-founder and CEO of Figma.

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

- Advertisement -

The World News