September 30, 2022

Topics
Adobe
Reuters 
https://mybs.in/2b0cPlS

Inc will buy startup Figma for about $20 billion in its biggest deal, the Photoshop maker said on Thursday, bulking up on applications that support online collaboration amid a global shift to hybrid working.
The cash-and-stock deal will give ownership of a company whose online collaborative platform for designs and brainstorming is used by firms ranging from Zoom Video Communications to AirBnB and Coinbase.

"The combination of and Figma is transformational and will accelerate our vision for collaborative creativity," Adobe Chief Executive Shantanu Narayen said in a statement.
Adobe has sharpened its focus on the collaboration tools space in recent years through acquisitions. It acquired work management platform Workfront in 2020 and cloud-based video collaboration platform Frame.io last year.
Still, shares fell 13% in early trading. Some analysts pointed to the size of the deal that could require Adobe to raise debt. The company had cash and cash equivalents of $3.87 billion as of Sept. 2.
"We're disappointed for the price paid for the company (Figma)," said David Wagner, portfolio manager and equity analyst at Aptus Capital Advisors that owns a 1.5% stake in Adobe.
"It tends to not be a great sign when a company has to acquire to defend share. It's not a sustainable solution." A CNBC report last month said thousands of Microsoft employees were utilizing Figma, putting pressure on the close relationship shared by the software giant with Adobe.
Distribution across machines running on Windows helped Adobe gain ubiquity and the also sync their products across platforms.
The deal is expected to close in 2023 and San Francisco-based Figma will continue to be led by co-founder and Chief Executive Dylan Field. Either company will have to pay a termination fee of $1 billion if they scrap the deal.
Meanwhile, Adobe's fourth-quarter revenue forecast of $4.52 billion came in below the $4.58 billion estimated by analysts, according to Refinitiv data.
Third-quarter profit also fell nearly 6%, reflecting the hit from a stronger dollar and higher costs.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor
PREVIOUS STORY
NEXT STORY
Copyrights © 2022 Business Standard Private Ltd. All rights reserved.
Business Standard
Upgrade To Premium Services
Business Standard is happy to inform you of the launch of “Business Standard Premium Services”
As a premium subscriber you get an across device unfettered access to a range of services which include:
Business Standard
Premium Services
In Partnership with Fis Logo
Dear Guest,
Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard

source

Leave a Reply