Figma

The deal values Figma cofounders Dylan Field and Evan Wallace's stakes in the buzzy design startup at $2 billion apiece.

Field took a Thiel Fellowship and dropped out of college in 2012 to begin building what would become Figma. Adobe’s last major acquisition was a [$1.2 billion takeover](https://blog.frame.io/2021/08/19/adobe-announces-intent-to-acquire-frameio/) of collaborative video editing and review software maker Frame.io in August 2021. “And design is a team sport—it’s collaborative by nature.” Forbes reported that the startup generated $75 million in revenue in 2020. Forbes estimates that Field and Wallace each hold a 10% stake in the company that would now be valued at $2 billion. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”

Adobe Inc. agreed to buy software design startup Figma Inc. in a deal valued at about $20 billion to help it expand tools for creative professionals.

Adobe shares fell 13% as the market opened in New York, the biggest decline in more than two years. [announced](/news/terminal/RI92POMEQTXC) by Adobe, which is a mix of half cash and half stock, [confirms](https://www.bloomberg.com/news/articles/2022-09-15/adobe-is-said-to-near-deal-to-buy-online-design-startup-figma) an earlier Bloomberg report and would mark the biggest ever takeover of a private software company, according to data compiled by Bloomberg. [Adobe Inc.](/quote/ADBE:US) agreed to buy software design startup [Figma Inc.](/quote/1349863D:US) in a deal valued at about $20 billion to help it expand tools for creative professionals.

San Francisco-based Figma, founded by Dylan Field and Evan Wallace in 2012, allows software developers and designers to collaborate remotely and design ...

[Purchase a Print subscription for 11,12 € per week You will be billed 107,91 € per month after the trial ends](https://subs.ft.com/spa3_uk3m?segmentId=461cfe95-f454-6e0b-9f7b-0800950bef25&utm_us=JJIBAX&utm_eu=WWIBEAX&utm_ca=JJIBAZ&utm_as=FIBAZ&ft-content-uuid=01c8cd15-f5b8-457a-8301-fb89413ee407) [Purchase a Digital subscription for 6,64 € per week You will be billed 39 € per month after the trial ends](https://subs.ft.com/spa3_digital?ft-content-uuid=01c8cd15-f5b8-457a-8301-fb89413ee407) [Purchase a Trial subscription for 1 € for 4 weeks You will be billed 65 € per month after the trial ends](/signup?offerId=41218b9e-c8ae-c934-43ad-71b13fcb4465&ft-content-uuid=01c8cd15-f5b8-457a-8301-fb89413ee407)

The $20 billion deal, if completed, would mark one of the largest-ever buyouts of a venture capital-backed startup in the U.S. Save for the occasional ...

Save for the occasional blockbuster acquisition like Microsoft's $26 billion purchase of LinkedIn, startups that grow so large tend to opt for an IPO.\n\nStartup valuations have plunged in the past nine months as the market’s lust for unprofitable tech companies has lessened. Figma last raised money at a $10 billion valuation in mid-2021, in a deal led by Durable Capital Partners.

The deal is part of Adobe's push to expand its tools for virtual collaboration, design and remote production.

“Figma has built a phenomenal product design platform on the web,” said David Wadhwani, president of Adobe’s Digital Media business. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” Founded by Dylan Field and Evan Wallace in 2012, Figma pioneered product design on the web.

Adobe has announced it has purchased Figma, a popular design platform and Adobe XD competitor, for $20 billion in cash and stock.

“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.” Experts believe that Adobe paid 50 times too much for the company when the purchase price is compared to Figma’s annual revenue. Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan. The company says the merger will “usher in a new era of collaborative creativity.” Until the transaction closes, each company will continue to operate independently. Since it was founded in 2012, Figma has amassed a following of millions of designers, developers, and students.

Founded in 2012, San Francisco-headquartered Figma has raised $333 million in venture funding to date, per Crunchbase data, and includes a long list of well- ...

Lastly, [Durable Capital Partners](https://www.crunchbase.com/organization/durable-capital-partners) led a $200 million Series in 2021. Nor will [Andreessen Horowitz](https://www.crunchbase.com/organization/andreessen-horowitz), which led a Series D in 2020. So should [Kleiner Perkins](https://www.crunchbase.com/organization/kleiner-perkins-caufield-byers), which led a Series B a couple years later. [Greylock](https://www.crunchbase.com/organization/greylock), which led Figma’s $14 million Series A in late 2015, should also see a massive return on investment. However, while Figma backers may be pleased with the deal, the same can’t be said for Adobe shareholders. [Sequoia Capital](https://www.crunchbase.com/organization/sequoia-capital) won’t be left out either, as the firm led Figma’s 2019 Series C.

$20 billion Figma deal is a historic coup for startup investors in an otherwise miserable year · Just over a year after raising money at a $10 billion valuation, ...

This really was more a question of what is the best way to achieve the goal of company, which is to democratize tools for design and creation across the globe." "Figma is actually one of these rare companies that has achieved incredible escape velocity," said Narayen, Adobe's CEO since 2007. Before that, the biggest was Macromedia for $3.4 billion in 2005. [BVP Nasdaq Emerging Cloud Index](https://cloudindex.bvp.com/), forward multiples have fallen to just over 9 times revenue from about 25 in February 2021. "This was a significant threat to Adobe," Lo Toney, founding managing partner of Plexo Capital, which invests in start-ups and venture funds, told CNBC's "TechCheck" on Thursday. They include Durable Capital Partners and "The company was IPO-able. venture-backed software M&A was tracking to its worst year since 2017." Tomasz Tunguz of Redpoint Ventures wrote in a Investors in the 2021 round doubled their money. Figma's cloud-based designed software has been a growing headache for Adobe over the last few years. There was no other bidder out there driving up the price, according to a person familiar with the matter who asked not to be named because the details are confidential.

The cash and stock deal will see Figma become part of the broader Adobe ecosystem, adding collaborative software development to the design company's list of ...

The company was founded in 2012, and Adobe said that it has since developed a dedicated following among developers. Adobe said that it expects the transaction to close sometime in 2023. Adobe announced today that it would pay $20 billion in cash and stock to acquire Figma, a web-based collaborative design platform.

Hi, it's Katie and Kamaron in New York. Today, we're taking a closer look at a record-breaking software deal and rounding up a busy week of dealmaker ...

Hi, it’s Katie and Kamaron in New York. Elsewhere, there’s the latest on the flurry of football takeovers in Europe. It’s going to be a bumper edition of the Deals newsletter today and we wanted to start with a few words on our scoop that

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Rimer, a partner at the venture capital firm Index Ventures, invited Figma's co-founder and chief executive officer, Dylan Field, to dinner and ordered a bottle ...

Field, 30, is now of legal drinking age in the US, and both he and Rimer stand to make a lot of money from the sale. Rimer went ahead, he recalled, and ordered the Pinot anyway. [Index Ventures](/quote/1805Z:SW), invited Figma’s co-founder and chief executive officer, Dylan Field, to dinner and ordered a bottle of wine to celebrate the deal.

Earlier this week, I asked our team for a copy of the slides for our annual Women in Tech, Media and Finance event and waited for a PowerPoint in my inbox.

Adobe Inc will buy startup Figma for about $20 billion in its biggest deal, the Photoshop maker said on Thursday, bulking up on applications that support ...

Either company will have to pay a termination fee of $1 billion if they scrap the deal. Distribution across machines running on Windows helped Adobe gain ubiquity and the companies also sync their products across platforms. It's not a sustainable solution." The company had cash and cash equivalents of $3.87 billion as of Sept. Some analysts pointed to the size of the deal that could require Adobe to raise debt. Adobe has sharpened its focus on the collaboration tools space in recent years through acquisitions.

Adobe's $20 billion Figma deal raises eyebrows and rings antitrust bells ... Turning foes into friends. ... A burgeoning design startup will now be owned by the ...

[debuted in 2016](https://www.forbes.com/sites/alexkonrad/2021/08/10/how-figma-became-designs-hottest-startup-valued-at-10billion/?sh=6f50f1a3726e), it’s been touted as an Adobe killer for being [more efficient, collaborative, and affordable](https://www.protocol.com/workplace/adobe-figma-dylan-field-user-reactions). Industry insiders, however, don’t understand the dumping. [pointed out](https://twitter.com/Vaskatta/status/1570561388581617664). 15, Adobe announced it was buying the San Francisco-based firm in a [$20 billion half-cash and half-stock deal](https://news.adobe.com/news/news-details/2022/Adobe-to-Acquire-Figma/default.aspx). [tweeted](https://twitter.com/amaldorai/status/1570604636524126210). The deal comes “with access to Adobe’s technology, expertise and resources in the creative space,” CEO Dylan Field [being unaffordable](https://twitter.com/4erepawko/status/1570436634419789826) and [clunky](https://twitter.com/andybudd/status/1570391834622562305). [antitrust issues](https://techcrunch.com/2022/09/15/adobe-is-buying-figma-for-20b-taking-out-one-of-its-biggest-rivals-in-digital-design/) come up and the deal doesn’t go through? 15 blogpost](https://www.figma.com/blog/a-new-collaboration-with-adobe/). [Adobe’s Instagram](https://twitter.com/nbashaw/status/1570419021211901953).” [plummeted 16%](https://seekingalpha.com/news/3883076-adobe-drops-11-on-reaction-to-20b-figma-deal-and-mixed-outlook) on the news, as well on its [mixed bag earnings results](https://www.zdnet.com/article/adobe-q2-a-mixed-bag-as-revenue-falls-short-of-estimates/). [Field’s tweet](https://twitter.com/zoink/status/1355173534390075394?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1355173534390075394%7Ctwgr%5E37eb9a89cff06141b271038df7c523973f593415%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fkinja.com%2Fembed%2Finset%2Fiframe%3Fautosize%3D1id%3Dtwitter-1355173534390075394) from Jan 29, 2021