附近上门

Should the $20 billion acquisition of 鈥攈alf in stock and half in cash鈥攑ass through regulatory hoops, it would be the largest acquisition of a private technology company to date, according to a 附近上门 News analysis.听

It would also prompt a big uptick in valuation from the last recorded valuation for the 10-year-old San Francisco-based company. Figma was valued around $10 billion in its Series E funding led by in June 2021. Its earlier investors, which include and , are poised to do very well from this acquisition.听

The largest technology acquisition prior to this announcement was 鈥檚 purchase of n 2014 for $19 billion. And the third largest is 鈥檚 purchase of in 2018 for $16 billion.听

This is not the only billion-dollar acquisition for Adobe in recent years.听

The San Jose-based digital marketing and design company founded in 1982 has acquired cloud service companies with a wide range of capabilities in recent years.听聽

Adobe acquired marketing automation platform from which took the company private in 2016 for around $1.8 billion. Adobe paid $4.8 billion in 2018. In the same year, Adobe acquired cloud commerce platform for $1.7 billion.

More recently, in 2020 it acquired enterprise workplace management company for $1.5 billion and in 2021 video collaboration platform for $1.3 billion.

Strong market response

The public markets have not reacted well to the announcement, with Adobe鈥檚 stock trending down 17% in a day. Adobe reported $4.43 billion in revenue in the third quarter of 2022 showing 13% year-over-year growth. Adobe forecasts that Figma鈥檚 recurring annual revenue will be .听

In 2005, when Adobe acquired , a web design software developer and a big competitor at the time, for $3.4 billion in a stock transaction which amounted to 18% of its stock, the market either.听

Still, the Figma acquisition offers clear advantages. With the advent of the cloud and scaled pricing from SaaS businesses, gaining a significant user base through product鈥攁nd price鈥攄ifferentiation has led to innovation and competition. Incumbents are not always well-positioned to launch lower-priced options at scale. Acquiring your way into that makes ultimate business sense.听

Illustration: