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