Adobe, a creative design software company, has announced a $20 billion acquisition of Figma, a web design tool, in an attempt to compete with its greatest competition.
Adobe intends to integrate existing capabilities such as photography, illustration, and video technologies into Figma’s products. Adobe offers paid features such as Illustrator, Photoshop, Behance, and Premiere Pro.
“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity,” Adobe CEO Shantanu Narayen said.
Figma, which was founded in 2012, expects to generate more than $400 million this year. Index Ventures, Kleiner Perkins, and Greylock Partners have all previously invested in web design platforms.
Dylan Field, the CEO of Figma, looked enthusiastic about the relationship, stating there is “great potential” for both firms and benefits designers can obtain from this collaboration, he revealed in an interview.
The fact that this transaction occurred during a global market downturn does not concern Adobe President of Digital Media Business David Wadhwami. He feels Figma is one of the best firms to acquire right now because it is cash flow positive and has a net dollar retention rate of more than 150%.
More crypto and NFT efforts on the way?
The combination of the two organizations may result in further NFT efforts.
Adobe has already entered the non-fungible (NFT) market. The business announced in October 2021 that it would be incorporating a “prepare as NFT” option into Photoshop. The option will be called Content Credentials and will allow, among other things, to prove ownership of NFTs. Sellers of digital collectibles could link their crypto wallet to their Adobe ID, proving the validity of NFTs if NFT marketplaces check it.
Behance, a social media platform for visual artists and designers, has recently received a crypto update, allowing users to connect crypto wallets to their portfolios. The software platform also stated that it will investigate supporting many blockchains, including Polygon (MATIC), Solana (SOL), Tezos (XTZ), and Flow. Behance added support for the Polygon blockchain this year to make it easier to demonstrate Polygon-based NFTs. According to the social networking site, they chose MATIC because of its “environmentally sustainable means for artists to create” digital treasures.