Adobe announced the acquisition of one of its competitors, collaborative design platform Figma, for a whopping sum of $20 billion.
Figma allows its users to collaborate on designing interactive mobile and web applications. It also touts a rich, extensible developer ecosystem. The product has garnered 4 million users and boasts serving companies like Dropbox, Rakuten, Slack, Twitter, and Volvo. The company is expected to earn $400 million in total ARR in 2022.
Adobe’s decision to acquire Figma for approximately $20 billion comes at a high price tag, as the target company’s last valuation in mid-2021 was half of that amount. Time will show what’s going to happen with the acquired tool, specifically, if—and how—it’s going to be integrated with AdobeXD.