This article had a prior version that didn’t contemplate the 2023 withdrawal of Adobe’s proposal. Content has been updated on Nov. 2024 to keep track of news developments.
Since its launch, Figma has become the go-to tool for both UX and UI Designers and Product Development businesses.
Yet, the Adobe Figma acquisition raised questions about the future of the beloved tool. Is the process for Adobe to acquire Figma a risky strategy?
This blog post will try to answer all the doubts about Adobe's largest merger agreement. What the design community should expect from this announcement?
What is Figma?
Let’s settle some context. What is Figma?
A world-class collaboration, Figma for UI/UX Design and UX Prototyping was founded in 2016 and has recast Product Design procedures since.
Its features for wireframing and high-fidelity design made it a key tool for teams and companies to deliver outstanding UI and UX in Product Design.
This cloud-based tool allows team members to collaborate in real life to quickly iterate designs, screens and products.
When Was Figma Founded?
In 2015, a group of Google devs built Figma to cover what both Photoshop and Sketch did and “eliminate the gap between imagination and reality."
Over time, Figma gained industry relevance, combining quality and accessibility, which eventually made it a foundational tool for both UX UI Design and Product Design.
What is Adobe?
The multinational software company Adobe Inc. is widely known for its innovative solutions for creativity and digital media.
Starting with former Xerox employees John Warnock and Charles Geschke, Adobe started as a desktop solution for advertising and visual effects.
The duo shared interests to move forward with solutions that were able to blend the possibilities of both digital and physical creative expressions.
This idea was the starting point for them to move forward independently from Xerox and build its competition and markets authority, which keeps rising to this day.
Since its founding in 1982, it has become a leader in software production with an Adobe Creative Cloud that includes tools like Photoshop, Illustrator and Premiere Pro.
Its solutions further expanded to document management solutions like Acrobat and its very own UX and User Interface Design tool, Adobe XD.
To this day, Adobe influences a wide variety of global industries with solutions that blend creative expression with Digital Transformation.
Famous Adobe Acquisitions
As you can imagine, the Adobe Figma acquisition is not the first great investment Adobe made to increase the potential of its Creative Cloud.
A notable example was when Adobe showed interests to move forward with the approval of the deal to acquire Pagemaker's parent company in 1994— known today as Adobe Acrobat!
A year later, in 1995, Adobe bought from the Knoll brothers the rights to Photoshop, a smart move considering the rising demand the '90s’ meant for digital photography technology!
Adobe To Acquire Figma
The words “Figma Adobe acquisition” were a shock for netizens! What did “Adobe acquire Figma” mean? How much did Adobe pay Figma? Does Adobe own Figma? What are the benefits for designers and companies?
The acquisition meant Adobe needed to pay Figma $20B to take control. Yet, this acquisition process, which started in Sep 2022, was also dicey in business terms.
The industry giant had in mind several workflows to integrate Figma’s web-based tool, known for its collaboration features, into its suite of creative tools.
Yes, Adobe needed to comply with regulations not only from the United States but also from the European Commission, such as the General Data Protection Regulation (GDPR).
Just over a year later, in Dec 2023, the Figma Adobe acquisition was abandoned due to regulatory challenges in the UK and EU. Adobe had to pay Figma a termination fee of USD 1B.
As for the time of this update (Nov. 2024), neither Adobe nor Figma longer see a path in which both businesses could blend operations.
Are you asking yourself, “What is Adobes version of Figma?”. Well, it still is Adobe XD.
The pricing of Adobe’s Complete Creative Cloud pack rounds is USD 60. Figma license costs go from USD 15 to 75, depending on capabilities and the number of users.
Conclusion
Figma's fate may seem unknown, but its positive impact on creativity is undeniable. Likewise, Adobe’s power was key for today’s landscape regarding digital design.
Whether it’s together or in separate lanes, we cannot wait to see what both Figma and Adobe have for us in creating better user digital experiences!
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