Figma, a cloud-based design tool company, announced that it will allow investors, including current and former employees, to sell their shares in a tender offer that values the company at $12.5 billion. Adobe had previously made a $20 billion acquisition offer in 2022, but the deal was called off in December due to regulatory scrutiny. Figma anticipates the size of the tender to be between $600 million and $900 million, with the support of over 25 current and new investors, including A16z, Sequoia, and Kleiner Perkins. The software is used by major companies such as Microsoft, Google, Oracle, and Salesforce, with Microsoft alone spending millions per year on its deployment.
In June 2021, Figma was valued at $10 billion during a funding round that included Morgan Stanley’s Counterpoint Global. However, the 2022 market plunge caused many cloud stocks to plummet by more than half, which had a significant impact on pre-IPO rounds. Adobe had initially believed that acquiring Figma would be a beneficial addition to its portfolio, as stated in the original announcement. They envisioned that the combination of Adobe and Figma would usher in a new era of collaborative creativity. Nonetheless, the deal fell through, and Adobe ended up having to pay Figma a $1 billion breakup fee.
Several major companies, including Microsoft, Google, Oracle, and Salesforce, utilize Figma’s software for their design needs. Microsoft alone spends a significant amount annually on the deployment of Figma within its organization. Figma’s decision to allow investors to sell their shares in a tender offer at a valuation of $12.5 billion shows their commitment to providing opportunities for investors, both current and former employees, to benefit from their success. With support from more than 25 current and new investors, including prominent venture capital firms like A16z, Sequoia, and Kleiner Perkins, Figma is poised for continued growth and success in the future.
The tender offer by Figma, which is expected to be between $600 million and $900 million, will give investors the chance to sell their shares at a significant valuation of $12.5 billion. The decision to allow investors to participate in the tender offer demonstrates Figma’s commitment to creating value for its stakeholders. Major companies like Microsoft, Google, Oracle, and Salesforce rely on Figma’s software for design purposes, highlighting the widespread adoption and popularity of the platform. The support from over 25 current and new investors, including prominent venture capital firms, further emphasizes the confidence in Figma’s business model and growth potential.
Despite the $20 billion acquisition offer from Adobe in 2022, Figma ultimately decided to allow investors to sell their shares in a tender offer at a lower valuation of $12.5 billion. The decision to call off the acquisition deal with Adobe was made in December due to regulatory scrutiny, with Adobe having to pay Figma a $1 billion breakup fee as a result. Figma’s ability to attract major companies as users of its software, along with the support from a diverse group of investors in the tender offer, positions the company for continued success and growth in the future. The valuation of $12.5 billion reflects the confidence in Figma’s business and its potential for further expansion and innovation in the design tool industry.
