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.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Get up to £500 cashback for investing with IG.
“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.