The cash and stock deal will see Figma become part of the broader Adobe ecosystem, adding collaborative software development to the design company’s list of capabilities. Adobe announced today that it would pay $20 billion in cash and stock to acquire Figma, a web-based collaborative design platform. Figma will be folded into the larger Adobe family of products, and will continue to operate independently until the deal closes. The $20 billion figure is a substantial step up in valuation for Figma, which was valued at $10 billion in its last funding round in 2021. The company was founded in 2012, and Adobe said that it has since developed a dedicated following among developers. Figma offers a rich range of collaboration options for joint software development, as well as the popular FigJam collaborative whiteboarding environment. “As creativity becomes increasingly collaborative, the web makes it easier for teams to create together,” said David Wadhwani, Adobe executive vice president and chief business officer for digital media, on the company’s third quarter earnings conference call. “Figma’s web-based, multiplayer platform can accelerate the delivery of Adobe’s Creative Cloud technologies on the web, making the creative process accessible to more people.” It’s a potential coup for Adobe, according to IDC research vice president of collaboration and communities Wayne Kurtzman. The growth in the importance of visual collaboration is a key market factor for Adobe, and purchasing Figma is “exactly the right move,” he said. “We are starting to see disruptive changes to the collaboration and workflow markets—and this is among them,” Kurtzman said. “Their challenge is in not only enhancing their products with these abilities, but also to build on Figma’s vision of collaboration that made it of value in the first place.” Adobe also emphasized the high profitability of Figma in its earnings call, praising the company for its expected addition of more than $200 million in net annual recurring revenue, pushing it over the $400 million mark by the end of fiscal 2022. “With a total addressable market of [about] $16.5 billion by 2025, Figma is just getting started,” said Wadhwani. The deal, which has not yet been approved by Figma stockholders, is still subject to their approval and customary closing conditions. About half of the total price will be paid in Adobe stock, with the remainder to be paid in cash. Adobe said that it expects the transaction to close sometime in 2023. Related content news analysis Apple earnings: About that iPhone 'slump' in China Based on information from Thursday's earnings report, it seems that data pointing to an iPhone slump in China were over-baked. By Jonny Evans May 03, 2024 9 mins iMac iPhone Apple news Microsoft begins to phase out ‘classic’ Teams Microsoft is encouraging Teams customers to move to the new, faster version of the collaboration app; the older version will be switched off next year. By Matthew Finnegan May 03, 2024 3 mins Microsoft Teams Collaboration Software Productivity Software news analysis Apple confirms it will open up the iPad in Europe this fall The latest efforts to comply with Europe’s Digital Markets Act mean developers can offer to side load apps to both iPhones and iPads in the EU. Apple has also taken steps to improve what it offers to smaller and non-commercial developers in the By Jonny Evans May 02, 2024 6 mins iPad Apple Mobile Apps news Udacity offers laid-off US workers free access to its courses for 30 days Sign-ups will be available over the next 30 days By Lucas Mearian May 02, 2024 4 mins Technology Industry IT Jobs IT Skills Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe