Figma, a popular design platform, will be acquired for approx. $20 billion in cash and stock by Adobe. It’s big news in design and development, since Figma is often compared to Adobe’s XD product line.
“Together, Adobe and Figma will reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers,” claims Adobe.
Founded in 2012 by Dylan Field and Evan Wallace, Figma’s collaborative design platform has become key for many businesses in recent years. Thousands of designers and developers at Microsoft are relying on Figma on a daily basis to build Office, Windows, and more. Microsoft and Adobe have been testing their relationship ever since Figma collaborated with Microsoft, and this relationship will only grow.
For its third quarter of fiscal year 2022 ended Sept. 2, Adobe reported revenue of $4.43 billion, an increase of 13%, and net income of $1.14 billion.
It is expected that Adobe will exit 2022 with more than $400 million in total annual recurring revenue (ARR). According to the company, Figma generates positive operating cash flows with gross margins of 90%.According to the company, Figma generates positive operating cash flows with gross margins of 90%.
Adobe and other rivals have always been struggling to compete with Figma in the web design niche. The Adobe Creative Suite will soon bundle Figma products and services as it merges its own community with Figma.
Figma will remain unchanged until then. According to Dylan Field, co-founder and CEO of Figma, “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,”. Field will report to Adobe president David Wadhwani as CEO.
Figma will make use of Adobe’s expertise in 3D, video, vector, imaging, and fonts to greatly improve product design on the web. Field says the collaboration of these two companies will build “new tools and spaces to empower customers to design products faster and more easily.”
