Adobe announced Thursday that it will acquire web-first collaborative design platform Figma in a cash and stock deal worth $20 billion.
"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 CEO Shantanu Narayen said in a statement. "The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity."
Figma's web-based multi-player capabilities will make the creative process more productive and accessible to more people by accelerating the delivery of Adobe’s Creative Cloud technologies on the web, the companies said. Adobe will integrate its imaging, photography, illustration, video, 3D and font technology into the Figma platform.
"With Adobe's amazing innovation and expertise, especially in 3D, video, vector, imaging and fonts, we can further reimagine end-to-end product design in the browser, while building new tools and spaces to empower customers to design products faster and more easily," Figma co-founder and CEO Dylan Field said.
The transaction is expected to close in 2023, subject to regulatory and shareholder approval and satisfaction of other customary closing conditions. Adobe will finance the deal through its cash on hand and, if necessary, a term loan.
Approximately 6 million additional restricted stock units will be granted to Figma's CEO and employees that will vest over four years after the deal's closing.
Figma says it will have a total addressable market of $16.5 billion by 2025. The company is expected to add approximately $200 million in net new annual recurring revenue (ARR) this year, surpassing $400 million in total ARR exiting 2022.
Adobe shares fell 9% in premarket trading on Thursday following the announcement.