Adobe

Adobe buys competing startup for $20 billion

Adobe has not been shy about acquisitions when competition in critical market areas for the company comes into view and has done the same again with the purchase of Figma.

Adobe opened its purse strings to shell out $20 billion to acquire a startup, Figma. The company developed and maintains a collaborative design platform, which at this time was Adobe XD’s main competitor.

With the operation, the competition becomes a partnership and Adobe also defends that the opportunities that will result from the crossing of offers, between Figmo’s technology and other Adobe products, are multiple and large.

The deal should be concluded in 2023, as it will still have to go through the approval of the regulators, but it is expected to make an important contribution to securing the results and the valuation of the company, which has been in decline.

Still, the deal is not consensual, as Reuters points out, and many shareholders believe that Adobe paid an exaggerated amount for a company that in the last round of capital, a year ago, was worth half what Adobe has now paid.

Figma annually earns about 400 million dollars, a drop in the ocean of 14 billion billed by Adobe, but the North American giant believes that the startup is positioned in a market that will be worth 16.5 billion dollars, already in 2025, between design and collaboration.

The acquisition strategy is not new at Abode, on the contrary. In the last two years the company has bought companies such as Frame.io, Workfront or ContentCal. In 2018, it acquired Marketo for $4.75 billion.

Figma will continue to operate as an independent company and maintain leadership, which is ensured by one of the co-founders.

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