Adobe, a company that makes software for creative design, has announced that it will buy the web design app Figma for $20 billion. This is an attempt to take on its biggest competitor.
Adobe wants to combine some of the existing features, like photography, illustration, and video technology, with Figma’s products. Illustrator, Photoshop, Behance, Premiere Pro, and other Adobe features cost money.
Adobe CEO Shantanu Narayen said, “The combination of Adobe and Figma is a game-changer and will speed up our vision for collaborative creativity.”
CNBC sources say that Figma, which started in 2012, will make more than $400 million this year. Index Ventures, Kleiner Perkins, and Greylock Partners are just a few of the companies that have invested in web design platforms in the past.
Dylan Field, CEO of Figma, seemed excited about the partnership. In an interview with Bloomberg, he said that there is “a huge potential” for both companies and features that designers can get from working together.
David Wadhwami, President of Digital Media Business at Adobe, is not worried that this acquisition deal happened during a downturn in the global market. He thinks that Figma is one of the best companies to buy right now because it has a positive cash flow and a net dollar retention rate of more than 150%.
If the two companies merge, it could lead to more NFT projects.
Adobe is already playing a game called non-fungible (NFT). The company said in October 2021 that it would add a “Prepare as NFT” option to Photoshop. The option will be called Content Credentials. Among other things, it will let you prove that you own NFTs. Digital collectibles sellers could link their crypto wallet to their Adobe ID, which would prove the authenticity of NFTs if NFT marketplaces checked it.
Behance, a social media site for visual artists and designers, also got a crypto update. Now, users can add crypto wallets to their portfolios. The software platform also said it might look into supporting blockchains like Polygon (MATIC), Solana (SOL), Tezos (XTZ), and Flow (FLOW). This year, Behance made it easier to show off NFTs based on the Polygon blockchain by adding support for it. The social media platform said that they chose MATIC because it lets artists make digital collectibles in a way that is “good for the environment.”