Photo by Dado Ruvic (Reuters/Scanpix).
Adobe, the world’s largest maker of video software, said Thursday it is buying design software company Figma for about $20 billion. USD. Investors evaluated the expensive purchase of the company with skepticism.
in San Francisco in 2012 founded Figma enables software developers and designers to collaborate remotely and create everything from slides for presentations to user interfaces for mobile apps.
Figma teamed up with Australian startup Canva to create new browser-based design tools that allowed design professionals to get creative. In this way, these companies expanded the market and threw down the gauntlet to Adobe, the leader in design software.
The deal values Figma at double the value of its last private funding round last year, when it raised $10 billion. USD, and ten times more than in 2019, although the share price of all software companies fell this year. Figma’s valuation is 50 times its annual recurring sales revenue, which Adobe says will exceed $400 million this year. USD, writes “Financial Times”.
Acquisitions with valuation multiples of 50 and above were common during the pandemic, but this year the average has fallen to below 20 earnings multiples and acquisitions have become rare.
This week, Adobe provided a more dour than expected earnings forecast for the coming quarter. 16.8%, or 29 billion, was cut from the company’s capitalization. USD, the company’s share price fell further after the announcement of the acquisition of Figma.
When the sale agreement was signed, the acquisition was the most expensive purchase by a US private company. So far, Facebook paid the most for a US company in 2014. for 19 billion WhatsApp acquired by USD.
A fall in Adobe’s stock price has reduced the value of the Figma deal, which will be settled in cash and stock, to $18.3 billion. USD.
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