Adobe Agrees To Buy Figma for About $20 Billion

Adobe agreed to buy software design startup Figma in a deal valued at about $20 billion to help it expand tools for creative professionals. From a report: The deal announced by Adobe, which is a mix of half cash and half stock, confirms an earlier Bloomberg report and would mark the biggest ever takeover of a private software company, according to data compiled by Bloomberg. Adobe shares fell 13% as the market opened in New York, the biggest decline in more than two years. Figma, which allows customers to collaborate on software as they build it, saw demand jump during the pandemic while more people worked remotely. The company expanded its customer base in recent years from software designers at big companies like Airbnb, Google, Herman Miller and Kimberly-Clark -- to also include individuals building lightweight games, maps and presentations. It has also attracted a loyal student following. The combination benefits "literally anybody who is a knowledge worker," said Adobe Chief Executive Officer Shantanu Narayen, in an interview. Adobe, which had been a Wall Street favorite for more than a decade, has been pummeled in the tech downturn, seeing its shares lose more than a third of their value since the start of the year. Investors have become increasingly skeptical about the dominance of Adobe's line of software for design professionals, which makes up about 60% of its revenue.

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