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'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.
