Adobe to Buy Figma, Collaborative App Design Platform, for $20 Billion

Software giant Adobe will pay $20 billion to buy Figma, a web-based collaborative design platform, in a deal worth about $20 billion. It would be Adobe’s biggest-ever acquisition.

The $20 billion price tag is about half cash and half stock. Adobe expects the deal to close in 2023, subject to the regulatory approvals and the approval of Figma’s stockholders. Founded in 2012, Figma provides a collaboration system for developers of interactive mobile and web applications.

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“Adobe’s greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions,” Adobe chairman and CEO Shantanu Narayen said in announcing the deal. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”

Also Thursday, Adobe reported record revenue of $4.43 billion, up 13% year over year, and net income of $1.14 billion for its third quarter of fiscal year 2022 ended Sept. 2.

Adobe said Figma is expected to exit 2022 with more than $400 million in total annual recurring revenue (ARR). Figma has gross margins of about 90% and generates positive operating cash flows, according to the company.

Adobe is “deeply committed to keeping Figma operating autonomously,” Dylan Field, Figma’s co-founder and CEO, wrote in a blog post about the deal. Field said he will continue as CEO, reporting to David Wadhwani, president of Adobe’s Digital Media business.

As part of Adobe, Figma “will have the opportunity to incorporate their expertise in imaging, photography, illustration, video, 3D and font technology to the Figma platform,” Field wrote. “Additionally, we will have the opportunity to reimagine what the best creative tools could look like within the Figma technology stack.”

The Figma deal is Adobe’s biggest M&A play in its 40-year history. In 2021, Adobe paid $1.275 billion for, a cloud-based video collaboration platform with more than 1 million users across media and entertainment companies, agencies and brands.

San Jose-based Adobe is best known for its design and video software such as Photoshop, Premiere Pro, Illustrator and Acrobat. The company also sells analytics, marketing and publishing products and services.

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