Dylan Field, co-founder and CEO of Figma, speaks on the startup’s Config convention in San Francisco on May 10, 2022.
Figma
As Figma was in talks about an acquisition with Adobe final yr, the design software program startup’s CEO, Dylan Field, approached one other public firm to gauge potential curiosity, in accordance with a regulatory submitting.
That firm was Microsoft, CNBC confirmed with an individual acquainted with the matter. Those talks weren’t severe and a suggestion by no means materialized, mentioned the particular person, who requested to not be named as a result of the main points are confidential.
Adobe in the end agreed to purchase Figma in September for $20 billion, the software program firm’s greatest buy ever. In a yr that noticed tech shares crater and the IPO market freeze, Adobe paid roughly 50 occasions annual recurring income for Figma, which was rising quickly and encroaching on Adobe’s turf.
The deal nonetheless awaits clearance from competitors regulators within the U.Ok. and within the European Union, Wednesday’s submitting says.
Microsoft is intimately acquainted with Figma’s expertise and the way shortly it may unfold inside giant organizations attributable to its give attention to collaboration. The software program lets individuals work collectively on app and web site design from disparate areas. Prior to the Adobe deal, CNBC reported on Figma’s rising recognition inside Microsoft.
However, Microsoft had its fingers full with its personal mega-deal. In January, the corporate agreed to purchase online game writer Activision Blizzard for nearly $69 billion and would quickly face calls for an antitrust investigation by U.S. lawmakers. In December, the Federal Trade Commission sued to dam the acquisition.
Party A
Figma’s deal-related chats with Microsoft date again to May, after acquisition talks had begun with Adobe. Field advised representatives of a publicly held expertise firm, recognized solely as Party A, that Figma would possibly obtain an acquisition provide, “and asked whether Party A would be interested in making an offer to acquire Figma,” the submitting mentioned.
Qatalyst Partners, Figma’s monetary advisor, met with somebody at Party A to gauge the corporate’s curiosity. An government there supplied to signal a confidentiality settlement and meet with Figma administration, in accordance with the submitting.
Figma gave Party A — Microsoft — confidential particulars as a part of the method. Three weeks after Field first reached out to the corporate, Party A mentioned it was not desirous about exploring an acquisition, the submitting mentioned.
Still, Field tried to drive up the worth. By July, after Adobe had mentioned it could pay $20 billion for Figma, Field proposed a value of $23 billion “and a retention pool valued at approximately $3 billion.” That proposal went to David Wadhwani, president of Adobe’s digital media unit. Wadhwani mentioned Adobe wasn’t keen to extend its provide.
Just a few days later, Field got here again to Wadhwani and requested a couple of $21.5 billion value. Wadhwani advised him that the $20 billion value was agency.
Adobe expects that present Figma shareholders will personal about 4% of Adobe’s excellent inventory as soon as the deal closes later this yr.
— CNBC’s Ari Levy contributed to this report.
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