Adobe buys Figma online service for $20 billion - the largest deal in the history of the software market

By: Maksim Panasovskyi | 15.09.2022, 19:39
Adobe buys Figma online service for $20 billion - the largest deal in the history of the software market

American company Adobe is buying online interface development service Figma. The takeover of the startup will be the largest deal in the history of the software market.

Here's What We Know

Adobe will pay $20 billion for Figma. The American giant will partially finance the deal in cash and stock (50/50). Interestingly, the price of Adobe stock fell by 13% after information about the purchase. Bloomberg Intelligence attributes this to the high price of the deal.

But Adobe stock hasn't been doing well all of 2022. Since January, the securities have fallen more than 33%. That's due to a drop in investor confidence in the cloudless future of the line of software for professional designers, which generates more than half of Adobe's revenue.

As for Figma, the startup was founded a decade ago. In 2021, the company was valued at $10 billion. Because of that, analysts call the value of $20 billion grossly overstated. Figma will continue to develop further and gain access to the developments of Adobe. And the buyer promises that Figma will exist as an independent product.

Dylan Field, the startup's founder, will continue to manage operations. In addition, he will receive 6 million additional restricted shares for four years. The closing of the deal between Adobe and Figma is expected in 2023.

Source: Bloomberg

Image: Figma