Adobe has agreed to buy software design startup Figma in a deal worth around $20 billion to expand its suite of creative tools for professionals.
The deal announced by Adobe, which is a mix of half cash and half shares, confirms a previous Bloomberg report and would be the largest takeover by a private software company to date.
It’s Adobe’s largest acquisition, and the market found the deal expensive, sending shares in New York down as much as 18 percent, the sharpest drop in more than two years.
Figma, which allows customers to collaborate on building software, saw a surge in demand during the pandemic as more people worked remotely.
The company has expanded its client base in recent years from software designers at major companies such as Airbnb, Google, Herman Miller and Kimberly-Clark to individuals creating light-weight games, maps and presentations. It has also attracted a student community.
The combination benefits “literally anyone who is a knowledge worker,” said Adobe CEO Shantanu Narayen in an interview.
Adobe, which has been a Wall Street favorite for more than a decade, has been hit by the tech downturn as its shares have lost more than a third of their value since the beginning of the year.
Investors have become increasingly skeptical about the dominance of Adobe’s software line for design professionals, which accounts for about 60 percent of sales.
The company has targeted more accessible web-based offerings like Adobe Express to sell its creative software to consumers, small businesses, and social media influencers.
https://www.independent.ie/business/world/adobe-shares-down-by-18pc-following-20bn-purchase-of-software-design-startup-figma-41993026.html Adobe shares up 18% after $20 billion purchase of software design startup Figma