Adobe has announced it will acquire the design platform Figma in a deal worth around $20 billion in cash and stock.
Figma, which creates cloud-based design software that enables collaboration in real time, was a direct competitor to Adobe, and was valued at $10 billion in its last funding round in 2021.
The company, which was founded in 2012, includes Index Ventures, Greylock partners and Kleiner Perkins among its investors, and expects to generate more than $400 million in annual recurring revenue this year, according to CNBC.
“Together, Adobe and Figma will reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers,” Adobe said in a statement. “The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders and the industry.”
Adobe will integrate some features of its other products, such as illustration, video and photography technology, into Figma’s platform. The design giant also plans to keep Figma operating autonomously, and founder and CEO Dylan Field will continue to run the company, reporting to Adobe president David Wadhwani.
Figma has become a key part of many businesses’ software suites in recent years. Thousands of designers and developers at Microsoft use Figma every day to build products such as Windows, Office and more.
Adobe also announced its latest quarterly results. The company reported earnings of $3.40 per share, beating estimates of $3.33 per share. Adobe posted $4.43 billion in revenue for the quarter, but issued mixed guidance for the next three months, predicting revenue to reach $4.52 billion.