Adobe planning to buy Figma, forecasts a stronger fourth quarter
- Economy
- DPA
- Published Date: 05:50 | 15 September 2022
- Modified Date: 05:50 | 15 September 2022
US multinational computer software company Adobe Systems reported weak third-quarter earnings on Thursday but also issued a fourth-quarter earnings outlook that was above market expectations.
Separately, Adobe announced that it has entered into a definitive merger agreement to acquire Figma, a web-first collaborative design platform, for approximately $20 billion in cash and stock.
In pre-market activity on Nasdaq, Adobe shares were losing around 8.5 percent to trade at $340.
For the fourth quarter, the company projects earnings per share of around $2.44 and adjusted earnings per share of $3.50. Total revenue is expected to be around $4.52 billion.
On average, 23 analysts polled by Thomson Reuters expect earnings of $3.45 per share for the quarter on revenues of $4.58 billion. Analysts' estimates typically exclude special items.
Regarding the acquisition of Figma, Adobe said the purchase price is comprised of approximately half cash and half stock, subject to customary adjustments.
Around 6 million additional restricted stock units will be granted to Figma's CEO and employees that will vest over four years subsequent to closing.
The transaction is expected to close in 2023, subject to the receipt of required regulatory clearances and approvals and the satisfaction of other closing conditions, including the approval of Figma's stockholders.
Adobe expects the combined company to reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers.