Adobe has announced that it has entered into a definitive merger agreement to acquire Figma, a web-first collaborative design platform, for approximately $20 billion. The combination of Adobe and Figma will usher in a new era of collaborative creativity, Adobe reports.
Figma’s mission is to help teams collaborate visually and make design accessible to everyone. Founded in 2012 by Dylan Field and Evan Wallace, the company pioneered product design on the web. Today, it enables anyone designing interactive mobile and web applications to collaborate through multiplayer workflows, advanced design systems, and a rich, extensible developer ecosystem. Figma has attracted a new generation of millions of designers and developers and a loyal following of students, Adobe reports.
Together, Adobe and Figma will reshape the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers. The combined company will have a huge, fast-growing market opportunity and the capacity to create significant value for customers, shareholders and the industry.
“Adobe’s greatness is rooted in our ability to create new categories and deliver breakthrough technologies through organic innovation and inorganic acquisitions,” said Shantanu Narayen, Adobe president and CEO. “The combination of Adobe and Figma is transformative and will accelerate our vision of collaborative creativity.”
Adobe and Figma share a passion for helping individuals and teams be more creative and productive. With Adobe and Figma’s extensive product portfolio, the combined company will have a rare opportunity to power the future of work by bringing together brainstorming, sharing, creativity and collaboration capabilities and delivering these innovations to hundreds of millions of customers.
Accelerate creativity online
Creators are currently challenged to create an ever-increasing amount of content in close collaboration with an increasing number of stakeholders. The web has become a ubiquitous platform that makes it easier for teams to create together. Figma’s web-based multiplayer capabilities will accelerate the delivery of Adobe’s Creative Cloud technologies to the web, making the creative process more productive and accessible to more people.
Digital applications are at the core of our personal and professional lives, fueling explosive growth in the product design category. Adobe and Figma will benefit all stakeholders in the product design process, from designers to product managers to developers, by bringing powerful capabilities of Adobe’s imaging, photography, illustration, video, 3D and font technologies to the Figma platform.
According to those involved, Adobe’s creative community has been a driving force behind the company’s continued innovation. Figma has a passionate community that develops and shares everything from tutorials to templates to plugins with their large and growing ecosystem. The combination of Adobe’s and Figma’s communities will bring designers and developers closer together to unlock the future of collaborative design.
“Figma has built a phenomenal product design platform on the web,” said David Wadhwani, president of Adobe’s Digital Media division. “We look forward to working with their incredible team and vibrant community to accelerate our shared mission to reshape the future of creativity and productivity.”
“With Adobe’s amazing innovation and expertise, particularly in 3D, video, vector, imaging and fonts, we can further reinvent end-to-end product design in the browser while building new tools and spaces to enable customers to design products faster and better easily,” said Dylan Field, co-founder and CEO of Figma.
Figma has a total addressable market of USD 16.5 billion by 2025. The company is expected to add approx. $200 million in net new ARR this year, surpassing total ARR of $400 million in 2022, with best-in-class net dollar retention of more than 150 percent. With a gross margin of approximately 90 percent and positive operating cash flows, Figma has built an efficient, high-growth business, Adobe said.