Home WORLD figma: Adobe buys Figma for $20 Billion. Details here

figma: Adobe buys Figma for $20 Billion. Details here

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Adobe bought Figma for $20 Billion and thereby wiped out its biggest competitor in digital design, making it the biggest news for the world of digital creative technology, according to reports.

The day ended with Adobe stating that they had acquired Figma, coinciding with their quarterly earnings.

The third quarter came with Adobe confirming turnovers of $4.43 billion and earnings per share at $3.40, which surpassed forecasts. However, Adobe would be acquiring a loan to tide over the purchase of Figma and has downsized its forecast for the next quarter with a EPS of $4.50 and turnover at 4.52 billion.

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Adobe’s US and India employees combined comprise 80% of the company’s global workforce.

The reasons given by them are the sluggish economic outlook. Their shares were trading 10 per cent lower than usual as Adobe had hoped that buying out a competitor would give a thrust to its business.

People liked how simplified Figma is as a design tool compared to Adobe. A few are worried about the complex interface that Adobe has and, overall, Adobe’s attitude towards users. Only stock brokers and investors are not the only concerned lot, but the internet has many users posting comments showing their anxiety about normal usage.

The buy-out has been divided into 50 per cent cash and 50 per cent stock options, and another 6 million will be allocated for a restricted stock for Figma CEO and employees.

They will continue working with Adobe for more than four years until closing. This understanding is, however, subject to various legalities and approvals, including the go-ahead from Figma shareholders.

More than 4 million people use Figma, and their strengths are modern methods used for their products. Adobe’s strengths lie in acquisitions of various companies in digital creation, and their core is design, but now they have a strong marketing arm.

Their products are well known, and everyone in imaging and design uses their products.

AdobeXD is similar to what Figma offers but what will be the new product emanating from this acquisition is for the drivers of Adobe to decide. The challenge for Adobe would be to build the bridge between Figma and Adobe so that users can get the maximum from both products.

Antitrust laws would also kick in, and it would be interesting to see how Adobe deals with those issues.

Dylan Field is expected to stay in Figma and drive its business for the time being. Shantanu Narayen, the Chairman and CEO of Adobe hopes the acquisition would benefit all.

FAQs

What is the turnover of Adobe?
Answer: $16.6 billion

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