Biggest Ever Takeover: Adobe Acquires Figma In a $20 Billion Deal
Keeping the spirit of business giants acquiring small firms alive in the market, Adobe software Inc recently announced the undertaking of software design start up Figma Inc in a deal valued at about $20 billion. Backing its decision, the company stated that it is looking to expand its business outing by increasing tools for creative professionals.
A recently published report by Bloomberg confirmed the deal, stating that the deal is a mix of half cash and half stock and would mark the biggest ever takeover of a private software company.
Start up Figma is an IT firm that allows customers to collaborate on software as they build it. The company's performance boomed recently when the corporate world adopted the remote-based work model. Additionally, Figma Inc has, in recent years, expanded its customer base from software designers at big organizations like Airbnb Inc, Google, Herman Millar Inc, and Kimberly-Clark Corp to include developers of lightweight games, maps, and presentations.
Figma is a San Francisco-based software development company co-founded by Dylan Field and Evan Wallace a decade ago. Offerings that popularized this brand involve browser-based software design tools that allow designers to work together on a timely basis. Its software can bypass the clumsy process of saving and sending tasks to collaborators through the collection of disparate apps.
$10 billion of Figma is backed by venture capital firms - Kleiner Perkins, Index Ventures and Greylock Partners.
What’s The Reality of The Adobe Deal?
Adobe company which has been a Wall Street favourite for investors for more than a decade, has been experiencing tough times in the industry. The reason for this tough time involves the loss of company revenue that made investors sceptical about the dominance of Adobe's line of software for design professionals. Thus, to regain its investors' trust and enhance its offering capabilities, Adobe headed to buy Figma Incorporation limited.
Recently, Adobe announced its third quarter results in which it observed only a 13% jump in its revenue to $4.43 billion. The results marked the third consecutive quarter of less than 15% growth. Well, the reduction in revenue generation was buffeted by economic uncertainty; it impacted the overall reputation of the business giant in the market. Thus, Adobe planning for expansion for a long time made this deal.