reached an agreement to acquire software design platform Figma in a deal valued at around $20 billion.
Founded in 2012, Figma is a desktop application that allows users to design online interfaces for both phones and the web. The deal is valued at about $20 billion in cash and stock,
(ticker: ADBE) said in a news release. The deal is expected to close in 2023, subject to regulatory approvals and approval by Figma shareholders, the company added.
“The combined company will have a huge, fast-growing market opportunity and the ability to generate significant value for customers, shareholders and the industry,” Adobe said in the press release.
Adobe also released its fiscal third-quarter earnings on Thursday — which were due after the markets closed.
The software company reported adjusted earnings for the fiscal third quarter of $3.50 per share on revenue of $4.43 billion. Analysts polled by FactSet had expected earnings of $3.35 per share on revenue of $4.44 billion.
Adobe also provided guidance for its fiscal fourth quarter. The company expects adjusted earnings of $3.50 per share on revenue of $4.52 billion. Wall Street expects fourth-quarter earnings of $3.47 per share on revenue of $4.6 billion.
“Our operational rigor combined with our strong innovation engine is driving growth across our platforms and will fuel future growth as the digital economy continues to expand,” Chief Financial Officer Dan Dern said in the company’s earnings release.
Adobe fell 14% on Thursday and the stock was the world’s worst performer
It was on pace for its biggest percentage decline since March 2020. At $319.68 per share, the stock was also on pace for its lowest close since April 2020. The stock is now down 44% this year.
Write to Angela Palumbo at [email protected]