• Adobe signs a definitive agreement to purchase Figma for $20 billion for strategic synergies
• Merger will result in strategic synergies and will reimagine the future of creativity
• Dylan Field, co-founder and CEO of Figma, will continue to lead the Figma team

Adobe has signed a definitive agreement to purchase Figma for approximately $20 billion in cash and stock. Adobe and Figma working together will usher in a new era of collaborative creativity. The merged entity will have a massive, rapidly expanding market opportunity and the ability to create significant value for customers, shareholders, and the industry.

Merger will result in strategic synergies. Merger will reimagine the future of creativity and productivity by accelerating web creativity, advancing product design, and inspiring global communities of creators, designers, and developers.

Figma has strong business prospects and it expects to have a market of $16.5 billion by 2025. With best-in-class net dollar retention of more than 150 percent, the company expects to add approximately $200 million in net new ARR this year, surpassing $400 million in total ARR by the end of 2022. Figma has built an efficient, high-growth business with gross margins of around 90% and positive operating cash flows.

We’re excited to share our intent to acquire @Figma. Together, we will usher in a new era of collaborative creativity. Key info: https://t.co/9wDSHPhyvE pic.twitter.com/U5SduJUVvc

— Adobe (@Adobe) September 15, 2022

Adobe has agreed to acquire Figma for approximately $20 billion in cash and stock, subject to accounting adjustments, under the terms of the definitive agreement. As a part of deal, Figma’s executives will  get stock option post closure of the transaction. Options will worth around $6million and will vest over period of four years. Adobe will finance the transaction through a mix of cash and loan. The transaction is expected to close in 2023, subject to regulatory clearances and stockholder approval.

2. @Adobe is deeply committed to keeping @Figma operating autonomously and I will continue to serve as CEO, reporting to @dwadhwani.

We plan to continue to run Figma the way we have always have — continuing to do what's best for our community, our culture and our business. (6/9)

— Dylan Field (@zoink) September 15, 2022

Dylan Field, co-founder and CEO of Figma, will continue to lead the Figma team after the transaction is completed, reporting to David Wadhwani, president of Adobe’s Digital Media business. Each company will continue to operate independently until the transaction is completed.

Adobe’s financial advisor is Allen & Company LLC, and its legal advisor is Wachtell, Lipton, Rosen & Katz in connection with the transaction.

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