Adobe To Acquire Figma For $20B (Adobe Today Announced That It Would Acquire Figma For $20 Billion)

Adobe to Acquire Figma for $20B

Digital design industry heavyweights Adobe and Figma just got knocked off the top spot with Adobe’s announcement that it will acquire Figma for $20 billion.

This morning, the Wall Street Journal. And Bloomberg both reported that Adobe was planning to announce its acquisition of Figma soon. As expected, Adobe announced the news alongside its quarterly financial results.

In Q3 the company reported revenues of $4.43 billion. And non-GAAP earnings per share of $3.40, both of which were in line with. And better than what was predicted by market watchers. 

The company has warned that it may need to borrow money in order to complete this transaction, and it has issued a tepid forecast for the coming quarter. Predicting $4.52 billion in revenue and $3.50 per share, citing “the overall macroeconomic environment” and “FX headwinds” as the reasons.

 Adobe probably thought the news of consolidating. And acquiring a rival would be good for business. As its stock is trading down by nearly 10% before the market opens.

These responses from Adobe’s and Figma’s core user base should serve as a warning. For the companies to tread carefully as they continue to integrate the two platforms. And bring their customers along for the ride.

Adobe to Acquire Figma for $20B

Adobe stated that the acquisition would paid for 50 percent in cash and 50 percent in Adobe stock.

Subject to the receipt of required regulatory clearances and approvals. And the satisfaction of other closing conditions, including the approval of Figma’s stockholders, the transaction expected to close in 2023.

And distribute all of these tools, Adobe is already far and away the industry leader.

Adobe Inc

Adobe Inc., formerly known as Adobe Systems Incorporated, is a Delaware corporation. With its headquarters in San Jose, California that develops and sells computer software.

 Its original focus was on tools for the production and distribution of visual media. Such as photographs, illustrations, animations, multimedia presentations, films, and printed publications. 

Adobe Inc to Acquire Figma

Adobe’s flagship products include Photoshop and Illustrator for image editing and vector-based illustration. Respectively; Acrobat Reader and the Portable Document Format (PDF); and a variety of other tools. Most of which used for creating, editing, and publishing audiovisual content. 

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Adobe has over 26,000 employees around the world as of the year 2022. Majorly Adobe development occurs in the US cities of Newton, NYC, Arden Hills, Lehi, Seattle, Austin, and San Francisco. 

It maintains sizable development offices in the Indian cities of Noida and Bangalore.

Security

Adobe Reader and other Adobe products have had security flaws that have used by hackers to break into users’ computers. 

There have many complaints voiced about Adobe’s Flash Player. Including issues with performance, memory usage, and security (see criticism of Flash Player). Kaspersky Lab researchers released a report. In which they called out Adobe for making products with 10 of the worst security flaws.

Adobe Security

Adobe has criticized for encouraging the installation of potentially unwanted software. Such browser toolbars and free virus scanners, as part of the Flash update process. 

The company was accused of encouraging the installation of scareware, software. Designed to trick users into paying for unnecessary system repairs, as part of the Flash update process.

Figma

Figma is an online tool for team interface design that also has native desktop apps for macOS and Windows. Figma’s feature set tailored toward UI/UX design, with an emphasis on real-time collaboration. Using a number of vector graphics editors and prototyping tools. 

There is an Android and iOS app for Figma. That lets you see and interact with your prototypes on the go. On September 15, 2022, Adobe made public. A plan to pay about $20 billion in cash and stock to acquire Figma.

Funding

Adobe Funding

Figma received $3.8 million in initial funding in June 2013. The firm secured $14 million in Series A funding in the previous year’s December. Figma completed its $25 million Series B funding round in February of 2018. 

A $40 million Series C funding round completed by Figma in February 2019. Figma completed a $50 million Series D funding round in April of 2020. Figma successfully completed its Series E funding round in June 2021, bringing in $200 million.

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Between April 2020 and May of 2021, Figma’s valuation increased from over $2 billion to over $10 billion. When Adobe bought Figma in September of 2022, they had a new addition to their team.

FAQs – People Also Ask

What is Figma used for?

Figma is an all-purpose design tool that can be used. To make anything from websites and apps to logos and more. You can take your first baby steps into the fields of UI/UX design. And design in general by learning to use the Figma UI/UX design tool.

What type of company is Figma?

Figma, created in 2012 by Dylan Field and Evan Wallace, is a collaborative design tool that functions as a shared digital whiteboard for teams. The firm plans to expand and introduce new products after successfully raising $200 million in early 2021.

For More References & News Related Articles, You Can Check Our Website: Velvetiere

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William Davis

William here, I'm a born and raised New Jerseyan who's always been interested in writing. After college, I moved to Canada to pursue a career in SAAS development. I've always been an avid fisherman, and enjoy spending my free time outdoors. I'm also a huge fan of TV shows, and often spend my evenings binge-watching my favorites.
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