Despite the ambient slump in tech, Adobe announces a colossal operation. The creative software giant has decided to spend 20 billion dollars to get its hands on the American start-up Figma, which is developing a collaborative design platform. Subject to the approval of the competition authorities, this acquisition should be finalized in 2023.
This move would allow Adobe to absorb a nascent competitor, but was not well received. On Thursday, September 15, the value of Adobe stock fell by 17% on Wall Street. Indeed, shareholders are worried about the exorbitant amount of the takeover, while Figma was a start-up valued at 10 billion dollars a year ago, at the end of its last funding round (200 million dollars in E-series). To seize it, Adobe did not hesitate to spend double, while the young shoot has only existed for a decade.
Adobe sees double
This is the largest acquisition in the history of the American giant, far ahead of the acquisition of Marketo for 4.75 billion dollars in 2018. According to Bloomberg, this operation constitutes the largest acquisition of a software publisher. unlisted, and calls out that Figma’s annual recurring revenue (ARR) is expected to reach $400 million in 2022, a tiny fraction of the $16 billion in revenue expected for Adobe this year.
While the shareholders of the giant are bloody ink, those of Figma are rubbing their hands. With this takeover, they are indeed offering themselves a royal exit with a particularly substantial return on investment. The famous American funds Sequoia and Andreessen Horowitz, which had supported the start-up during its last funding round in 2021, are among those who have won the jackpot. An unexpected event in the digital ecosystem, currently facing a slowdown in fundraising, collapsing valuations and a very severe stock market with technology stocks.