Tuesday, October 4, 2022

Adobe to acquire Rival Figma for $20 billion

HomeArticleAdobe to acquire Rival Figma for $20 billion

Adobe is buying Figma for $20 billion in cash and stock. After rumours of an acquisition surfaced early Thursday, Adobe made it official. Figma has been competing with Adobe’s XD products for years, so this is big news.

“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,” claims Adobe. “The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders and the industry.”

Dylan Field and Evan Wallace founded Figma 10 years ago, and it’s become a key business tool. Microsoft relies on Figma to build Office, Windows, and more. Microsoft uses it so much that it’s tested its partnership with Adobe, which will only grow.

Adobe and other rivals struggle to compete with Figma’s web focus. Adobe plans to combine its own community with Figma, likely by bundling Figma products and services into Adobe Creative Suite.

Figma won’t change until then. Dylan Field, co-founder and CEO of Figma, says, “We plan to continue running Figma the way we always have” Adobe wants Figma to operate independently. Field will remain CEO and report to David Wadhwani.

Figma wants to use Adobe’s 3D, video, vector, imaging, and fonts to improve web product design. Field says the combined company will create “new tools and spaces” to speed up and simplify product design.

Adobe hasn’t detailed its long-term vision or plans, but the company is holding a conference call with investors at 7AM PT / 10AM ET today.