Adobe Intends to Buy Online Design Startup Figma in $20 Billion Deal

According to people familiar with the circumstance, Adobe is closing an agreement to acquire Figma, a startup that creates online design collaboration tools.

According to the persons who asked not to be identified since the information is private, an agreement might be announced as soon as Thursday. According to one of the sources, the parties have been considering a valuation for Figma of more than $15 billion.

On Thursday, Adobe will report its fiscal third-quarter earnings. Deliberations are ongoing, and the details of a deal could yet change, according to the sources.

Adobe and Figma representatives did not immediately respond to requests for comment.

Figma was in stealth mode for several years before unveiling browser-based tools that allow software creators to collaborate in real time. Its products enable collaborators to avoid the often tedious process of saving and delivering work to others via a handful of disparate apps.

With the rise of remote working, the company, led by co-founder Dylan Field, saw demand rise throughout the pandemic. According to the company’s website, its customers include Airbnb Inc., Google, Netflix Inc., and Twitter Inc. Venture capital firms Kleiner Perkins, Index Ventures, and Greylock Partners are among Figma’s backers.

Adobe, a Wall Street favorite for more than a decade, has taken a beating in the tech downturn, with its shares dropping more than a third of their value since the beginning of the year. Investors have been increasingly wary of Adobe’s creative software dominance, and the company has sought to diversify into more consumer-friendly offerings.