Adobe Buys Figma for $20 Billion

Adobe last week announced a $20 billion half-cash, half-stock deal to buy Figma, a web-native, collaborative graphic design platform that competes with several important Adobe products. The price is more than 200x Figma’s 2021 revenue although Adobe said it expected Figma revenue to more than quadruple to a $400 million annual run rate by the end of fiscal 2022. That’s much faster than Adobe’s current 13% growth rate although it’s still a small fraction of Adobe’s roughly $17 billion revenue.