Adobe completes a massive $20 billion acquisition of its largest rival
- September 16, 2022
- Posted by: Ezitech
- Category: News
One of Adobe’s key rivals in the field of digital design, Figma, has revealed that it would be purchased by the company for an astounding $20 billion.
According to Adobe, the deal will be split equally between cash and shares, with the CEO and staff of Figma receiving 6 million extra restricted shares that would vest over the course of four years after the anticipated conclusion of the transaction in 2023.
Additionally, Figma’s primary product line offers design and prototyping in a contemporary cloud-based environment, which has aided it in gaining over 4 million users to date. Adobe, on the other hand, is a design innovator as well and has been buying up companies in the worldwide digital market.
The ability to create new categories and offer cutting-edge inventive solutions, according to Adobe CEO Shantanu Narayen, is what makes his firm successful. He also claimed that the purchase is a game-changing step that will strengthen their goal for integrated creativity.
On the other hand, according to Dylan Field, co-founder and CEO of Figma, Adobe’s skills and creativity in 3D, video, vector, image, and typefaces will be used to recreate end-to-end product creation in the design browser while developing new tools to give users more control.
Remember that Figma was valued at $10 billion in June 2021 when it raised $200 million, and Adobe not only got rid of its main opponent but also bought a rapidly expanding company.
According to Adobe, the addressable market for Figma will be $16.5 billion by 2025. It is anticipated that this year’s net annual recurring revenue (ARR) addition will be in the neighbourhood of $200 million, and that after 2022, the total ARR will exceed $400 million with a net dollar retention rate of more than 150 percent. With 90 percent gross margins and positive operating cash, the company has created a very scalable business.