Adobe has entered into a definitive merger agreement to acquire web-based collaborative design platform Figma, for approximately $20 billion. The transaction is expected to close in 2023, subject to regulatory clearances and customary closing conditions.

Upon the closing of the transaction, Dylan Field, Figma’s co-founder and CEO, will continue to lead the Figma team, says Adobe. Mr. Field wil report to David Wadhwani, president of Adobe’s Digital Media business. Until the transaction closes, each company will continue to operate independently.

Figma has a total addressable market of $16.5 billion by 2025. The company is expected to add approximately $200 million in net new ARR this year, according to Adobe.

[Image courtesy: Figma]