Adobe Falls 12% Pre-Market After Revealing $20 Billion Acquisition Of Figma

Adobe (NASDAQ: ADBE) is making waves this morning with the announcement that it has entered into a definitive agreement to acquire Figma. The transaction will see the design platform acquired for $20 billion, with payment to come in the form of both cash and stock.

Figma is a web-based design platform that enables designers of mobile and web applications to work together via multi-user workflows, design systems, and a developer ecosystem. The acquisition by Adobe is being billed as a way to bring together capabilities for “brainstorming, sharing, creativity and collaboration.”

The transaction will see the total $20 billion figure paid in half cash and half stock, with an additional 6.0 million restricted stock units to be issued to the CEO of Figma as well as certain employees, which will vest over a four year period. The cash portion of the deal is expected to be funded via cash on hand and a potential term loan if needed.

The purchase is currently slated to close in 2023, with Figma CEO Dylan Field slated to remain at the helm, reporting to the president of the Adobe’s digital media business.

Given the current market conditions, it appears that shareholders aren’t exactly receptive to the transaction.

Adobe last traded at $371.52 on the Nasdaq.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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