According to sources, Adobe’s $20 billion acquisition of Figma, which eliminated its main rival in digital design, is the biggest development in the field of creative technology.
In conjunction with their quarterly earnings, Adobe announced that they had bought Figma as the day came to a close.
Adobe announced third-quarter results that exceeded expectations with revenues of $4.43 billion and profits per share of $3.40. However, Adobe has revised its prediction for the upcoming quarter, with an EPS of $4.50 and a turnover of $4.52 billion, and would be getting a loan to tide over the acquisition of Figma.
The weak economic prospects are cited by them as justifications. Because Adobe had thought that purchasing out a rival would boost its company, its shares were selling 10% below normal.
People enjoyed how much easier Figma is to use as a design tool than Adobe. A few people are concerned about Adobe’s complicated user interface and general user-centric philosophy. There are many people who write comments on the internet expressing their worry about routine usage, so stock brokers and investors are not the only ones who are concerned.
The buy-out has been split into 50% cash and 50% stock options, and an additional $6,000,000 will be earmarked for a restricted stock for the CEO and staff of Figma.
They will work with Adobe until closure, which will take more than four years. However, this agreement is contingent on a number of legal requirements and permissions, including the approval of the Figma shareholders.
Figma is utilized by more than 4 million individuals, and its goods are made using cutting-edge techniques. The fundamental competency of Adobe is design, although they have recently added a powerful marketing division. Their capabilities rely in the purchase of numerous digital development enterprises.
Although AdobeXD is comparable to what Figma delivers, the decision as to what new product will result from this purchase rests with Adobe’s executives. Building a connection between Figma and Adobe so that consumers may benefit fully from both products will be a challenge for Adobe.