Adobe agreed to buy Figma, a web-first design platform company, for around $20 billion.
Why it matters: This would be the largest acquisition ever of a privately held software company.
The deal is structured via an even split of cash and stock. ($10 Billion each)
Last Year: Figma raised around $330 million in VC funding, most recently via a Series E round led by Durable Capital Partners at a $10 billion valuation.
This deal makes Adobe a monopoly in UI/UX design space.
In the future, Adobe plans to add Figma to its creative cloud bundle.
Backstory: Adobe first approached Figma several months ago, per a source familiar with the process. Figma didn't run a formal auction process, nor was it seeking to raise new private funding.
Backlash: Adobe stock fell 25% after the acquisition announcement after many reports pointed out that deal was too high (50x 2022 ARR) - Reports
Catch Up Quick: Adobe's ambition to stay relevant stay strong, The company plans to acquire many other startups in order to keep the growth high.