Shantanu Narayen, CEO of Adobe Systems Inc.
David Paul Morris | Bloomberg | Getty Images
Adobe introduced Thursday that it’ll acquire design software program agency Figma in a deal value about $20 billion in money and inventory.
Figma, based in 2012, creates cloud-based design software program that permits groups to collaborate in actual time. It competes head-to-head with Adobe’s XD program.
The firm was valued at $10 billion in its final funding spherical in 2021.
Figma, whose backers embody the likes of Index Ventures, Greylock Partners and Kleiner Perkins, is predicted to generate greater than $400 million in annual recurring income this yr, sources conversant in the corporate’s financials beforehand instructed CNBC. Adobe confirmed Figma’s ARR will surpass $400 million exiting 2022.
Adobe stated it is going to combine a few of the options from its different merchandise, reminiscent of illustration, pictures and video know-how, into Figma’s platform. Adobe sells a variety of software program providers for photograph and video professionals, like Photoshop, Illustrator, Premiere Pro and extra.
“Adobe’s greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions,” stated Adobe CEO Shantanu Narayen. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
Once the deal closes, Figma co-founder and CEO Dylan Field will proceed to run the corporate. He’ll report to David Wadhwani, president of Adobe’s digital media enterprise.
Adobe additionally introduced fiscal third-quarter outcomes. It reported earnings of $3.40 per share, adjusted, topping Refinitiv estimates of $3.33 per share. It posted $4.43 billion in income, which matched analyst expectations of $4.43 billion.
The firm issued blended steerage for the fiscal fourth quarter. Adobe stated income within the quarter shall be $4.52 billion, in contrast with consensus estimates of $4.6 billion, in accordance to StreetAccount. It expects to report earnings of $3.50 per share, adjusted, above a StreetAccount forecast of $3.47 per share.
Shares of Adobe slid greater than 14% in early buying and selling.
Correction: This article has been up to date to right Adobe’s third-quarter outcomes.