The Daily Telegraph

Adobe mounts $20bn swoop for rival Figma

- By Matthew Field

ADOBE, the developer of Photoshop, has swooped on a rival digital design company in what could be the biggest takeover of a private technology start-up on record.

The US tech company, which created the PDF file format, is buying Figma, a digital design app, in a $20bn (£17bn) deal. The buyout, in cash and shares, has the potential to be the largest ever takeover of a private software company, as the final value could increase based on Adobe’s share price.

Facebook’s acquisitio­n of Whatsapp was valued at $22bn.

Adobe said it expected to finance the deal using cash, but that it could take out a further loan to cover the cost of the takeover.

Shares in Adobe fell 12pc on the announceme­nt of the deal.

Figma, which was founded in 2010, previously raised $330m at a $10bn valuation in 2021. Its investors include Index Ventures, Kleiner Perkins and Andreessen Horowitz. Its tools have been heavily used by designers and its major clients include Microsoft.

The takeover values the stakes of the company’s founders, Dylan Field and Evan Wallace, at $2bn each.

Its technology includes design and editing software that can be used collaborat­ively from an internet browser or a smartphone app. As well as offering a paid profession­al version, Figma developed a free version of its app.

Shantanu Narayen, Adobe’s chairman and chief executive, said: “The combinatio­n of Adobe and Figma is transforma­tional and will accelerate our vision for collaborat­ive creativity.”

The deal came as Adobe announced record quarterly revenues of $4.4bn, a 13pc year-on-year increase.

Figma said it expected to add Adobe’s 3D design, video, imaging and fonts to its online app. The company’s annual recurring revenues were expected to come in at $400m in 2022.

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