Equities

Figma Shares Sell Post-Adobe, Valued at $12.5B Amid Breakup

Figma initiates tender offer at $12.5 billion valuation, post-Adobe deal collapse, with significant investor backing.

By Alex P. Chase

5/16, 15:08 EDT
Adobe Inc.
Salesforce, Inc.
Alphabet Inc.
Microsoft Corporation
Oracle Corporation
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Key Takeaway

  • Figma's tender offer values the company at $12.5 billion, a 25% increase from its 2021 valuation but below Adobe's $20 billion offer.
  • The tender involves $600-$900 million in shares, with investment from A16z, Sequoia, and Kleiner Perkins.
  • Adobe's failed acquisition of Figma resulted in a $1 billion breakup fee amid regulatory scrutiny.

Tender Offer Announced

Figma, a prominent cloud-based design tool company, has initiated a tender offer that allows investors, including both current and former employees, to sell their shares. This move values Figma at $12.5 billion, marking a 25% increase from its 2021 valuation during a fundraising event. However, this valuation falls short of the $20 billion acquisition offer made by Adobe in 2022, an acquisition that was later abandoned due to regulatory concerns. The tender offer is expected to range between $600 million and $900 million, with backing from over 25 current and new investors, including notable names such as A16z, Sequoia, and Kleiner Perkins.

Usage and Valuation History

Figma's software is widely utilized across the tech industry, with significant adoption by major companies like Microsoft, Google, Oracle, and Salesforce. Microsoft, in particular, is reported to spend millions annually on deploying Figma's tools, underscoring the software's importance in the tech ecosystem. The company's valuation trajectory has been notable, with a $10 billion valuation in June 2021 during a peak period for mega financings. This was before the 2022 market downturn, which saw many cloud stocks decline significantly and a slowdown in pre-IPO financing rounds.

Adobe Acquisition Attempt

The attempted acquisition of Figma by Adobe was initially seen as a complementary move for Adobe's portfolio, promising to usher in a "new era of collaborative creativity." However, the deal was called off in December following regulatory scrutiny, leading to Adobe agreeing to pay Figma a $1 billion breakup fee. This development highlights the regulatory challenges and market dynamics affecting major tech acquisitions.