Photoshop maker, Adobe Inc, is set to acquire a start-up, Figma, for about $20 billion, the company revealed.
According to Bloomberg, an agreement is set to be reached on Thursday.
The parties involved have been discussing a valuation of more than $20 billion for Figma, one of the parties involved said.
Deliberations are ongoing, and terms of a deal could still change, Bloomberg report.
Representatives for Adobe and Figma didn’t immediately respond to requests for comment.
“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity,” Adobe Chief Executive Shantanu Narayen said in a statement.
Meanwhile, David Wagner, portfolio manager and equity analyst at Aptus Capital Advisors that owns a 1.5% stake in Adobe, said, “We’re disappointed with the price paid for the company (Figma).
“It tends to not be a great sign when a company has to acquire to defend share. It’s not a sustainable solution.”
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