Adobe has agreed to purchase design software company Figma for $20 billion which has come as a huge surprise considering the rough year the tech sector has been experiencing.

The San Francisco-based company which was founded in 2012 takes a spin on software development and designers by allowing users to create and collaborate on anything from the use of mobile apps.

Many are beginning to believe that the acquisition occurred largely due to Figma, and other companies such as Canva, have become a serious threat to Adobe which has been the leader in design software for some time now.

The purchase price of $20 billion for Figma is double what the company was valued at last year and ten times what the company was valued at in 2019.

Adobe’s decision to “overspend” on Figma has sent a shockwave through its own stock price as the company dropped by 16.8% or roughly $29 billion of its total value.

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‍Source: Financial Times