Computer software company Adobe Inc. declares today, Aug .15, its intention to purchase web-first collaborative tool Figma through a definitive merger agreement. According to its official announcement, Adobe is acquiring Figma through a $20 billion cash and stock buyout.
The consolidation of Adobe and Figma could only result in improved collaborative features for the multinational company's already-competitive software portfolio. Additionally, Adobe already offers the capability of working cooperatively in real time to produce the highest quality work for practically any form of media, including print, web, video, mobile, voice, and immersive media. This is only guesswork from us, but the acquisition of Figma could be a great addition to its existing software.
What is Figma?
In a time when collaborative online tools are becoming the norm for remote work, the web application Figma serves as a one-stop shop. Figma is a collaborative web application for interface design, with desktop applications for macOS and Windows enabling additional offline features.
Real-time viewing and interaction with Figma prototypes on mobile and tablet devices are made possible by the Figma mobile app for Android and iOS. This enables creators to track their progress instantaneously. The company plans to add more significant features soon to make its mechanics run smoother.
With a variety of graphics editors and prototyping tools, Figma's feature set focuses on user interface and user experience design with a strong emphasis on real-time collaboration. It offers a genuinely collaborative platform for managing workflows, coordinating teamwork, and producing top-notch client work.
More About the Adobe-Figma Merger
As per a Bloomberg report, the rise in remote working during the pandemic caused Figma's demand to increase. Among its most notable clients are Twitter, Google, Netflix, and Airbnb Inc. Venture capital firms Kleiner Perkins, Index Ventures, and Greylock Partners are some of Figma's backers. After the acquisition, its CEO Dylan Field will remain the company's main executive.
By 2025, Figma's addressable market will be worth $16.5 billion overall. The company is anticipated to increase net new annual recurring revenue by about $200 million in the next few years.
Meanwhile, despite tumbling down on the stock market for the past quarters, Adobe remains the leading digital tools and design platform in the industry. Its flagship project, the Adobe Experience Cloud, is still the main program running the digital industry.
TechCrunch reports that the company indicated that it might need to take out loans to finance this purchase. Adobe also gave a cautious outlook for the following quarter, estimating $4.52 billion in revenues and $3.50 per share in earnings, citing "the overall macroeconomic environment" and "FX headwinds." This deal might be quite a risk for Adobe and its investors.
According to an Adobe news release, "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."
Adobe Inc.'s acquisition may solidify the company's position in the collaborative digital tool ecosystem.
