The superlative numbers in Adobe’s M&A

American multimedia software giant paid a multiple of more than 50 times revenue to take Figma

In one of the software industry’s biggest deals, Adobe today announced the acquisition of Figma, an interface design platform, for $20 billion. It is the largest private technology company purchase ever announced in history.

The previous record was WhatsApp, which Facebook won for $19 billion at the time — and later extended to $22 billion — The Information showed, based on data from Qatalyst Partners, the firm that advised Figma.

In the area of ​​subscription software, the transaction is one of the three largest, only behind the acquisition of Slack by Salesforce, an M&A between two listed companies that sold for US$ 27 billion, and the acquisition of LinkedIn by Microsoft (US$ 26 billion). .2 billion)

The multiples of the Figma acquisition are also impressive, showing Adobe’s willingness to keep the asset. With recurring revenue of $400 million, the M&A out more than 50 times, a multiple worthy of venture capital in its heyday (and not after this year’s dramatic sell-off).

On the stock market, Adobe investors reacted badly to the size of the check. Shares are down nearly 15%, with the Silicon Valley firm valued at $144 billion.

The ones who come out of the story happy are the venture capital funds that bet on Figma: Sequoia, Index Ventures, Greylock Partners and Kleiner Perkins. Sequoia, for example, invested $97 million for a stake valued in the sale to Adobe at $1.2 billion, according to The Information.

Source: Value Pipeline