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Adobe to Acquire Design Platform Figma – Shares Decline

Key points:

  • Adobe announces acquisition of Figma for $20bn
  • The company also reported earnings
  • Shares are down 13%

Adobe (NASDAQ: ADBE) announced on Thursday that it has entered into an agreement to acquire Figma for approximately $20 billion in a cash and stock deal.

Figma, founded in 2012, is a design platform that allows teams to collaborate in real-time. The company stated that the combination of Adobe and Figma would usher in a new era of collaborative creativity.

Adobe told investors it will integrate features such as imaging, photography, illustration, and video technology into Figma’s platform.

Adobe

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“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, of Adobe.

Narayen continued: “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”

Upon the transaction’s closing, expected in 2023, Figma’s co-founder and CEO, Dylan Field, will continue to lead the Figma team, reporting to David Wadhwani, president of Adobe Digital Media business.

Furthermore, Adobe reported its fiscal third-quarter earnings. The company posted record revenues of $4.43 billion, representing a 13% growth year-over-year. In addition, earnings per share came in at $3.40 per share.

Meanwhile, the group issued mixed guidance for the fiscal fourth quarter, with revenue expected to be $4.52 billion and earnings per share of $3.50.

Adobe stock declined 13% in early Thursday trading.

Sam Boughedda
Sam Boughedda
Team Member

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples. 

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