Adobe buys design software company Figma for  billion

Adobe buys design software company Figma for $20 billion

  • The company will incorporate into its creative services the tools that belonged to what, until now, had been its competitor.

The American software company Adobe today acquires the company Figma for 20,000 million dollars (equivalent to 20,025.71 euros). This is a technology firm specializing in digital product and prototyping tools, which it intends to integrate into its creative services such as Photoshop, Premiere, InDesign and Illustrator.

Figma has been considered by some media as Adobe’s ‘greatest threat’, so its purchase is quite strategic. However, it is important to note that the cost of the acquisition is high, especially when compared to past acquisitions of Instagram ($1 billion), WhatsApp ($22 billion) or Slack ($27 billion).

The brand, which will go into the hands of Adobe today, has 850 employees and revenues of around 400 million dollars (equivalent figure in euros) are calculated in 2022, with a gross margin of more than 90%.

The profit estimates translate into Adobe paying 50 times more revenue than the company will have. This purchase comes at a time when cloud software sales multiples are falling.

Shantanu Narayen, president and CEO of Adobe, has stated that through this acquisition, he intends to achieve a “transformative” combination that accelerates his vision “for collaborative creativity.”

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