Adobe shares plummet after announcement of 20 billion acquisition of
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Adobe shares plummet after announcement of $20 billion acquisition of Figma

The night before, Adobe announced the acquisition of the developer of the design platform Figma – the deal amounted to around $ 20 billion in cash and stock. After that, Adobe stock fell 17%, its biggest drop since 2010.

    Image source: adobe.com

Image source: adobe.com

Founded in 2012, Figma is a cloud-based design service that supports real-time collaboration. The service is a direct competitor to the Adobe XD service, among others. The company was valued at $10 billion when it last raised in 2021, and analysts say Figma, whose investors include Index Ventures, Greylock Partners and Kleiner Perkins, will post sales of more than $400 million in 2022 – this has also been confirmed by Adobe. The transaction amount exceeded this number by a factor of about 50.

Adobe has announced that it will integrate the functionality of some of its other products, such as illustration, photography and video, into the Figma platform. Upon closing of the transaction, Dylan Field, co-founder and CEO of Figma, will continue to lead the company but will report to David Wadhwani, President of Digital Media at Adobe.

Adobe also reported financial results for the third fiscal quarter. Adjusted earnings per share were $3.40, ahead of analysts’ forecast of $3.33. The company’s revenue came in at $4.43 billion, just as analysts had predicted. In the fiscal fourth quarter, the company estimates that its revenue will be $4.52 billion — analysts say it will be $4.6 billion — and the company expects earnings per share of $3.50 , which is higher than Wall Street’s forecast of $3.47

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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