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.
A brief about Adobe Buys Figma for $20 Billion:
Adobe announced third-quarter results that exceeded expectations with revenues of $4.43 billion and earnings 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 restricted stock for the CEO and staff of Figma.
They will work with Adobe until closing, 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 used by more than 4 million people, and its products are made using cutting-edge techniques. The fundamental competency of Adobe is designed, although they have recently added a powerful marketing division. Their capabilities rely on the purchase of numerous digital creation enterprises.
Everyone in the image and design industries uses their well-known products.