Adobe on Thursday announced it would acquire design software company Figma for about $20 billion in a cash and stock deal.

Founded by Dylan Field and Evan Wallace in 2012, Figma pioneered product design on the web.

The combination of Adobe and Figma will usher in a new era of collaborative creativity.

“Adobe’s greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions,” said Shantanu Narayen, Chairman and CEO, Adobe.

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“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity,” he added.

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, surpassing $400 million in total ARR exiting 2022.

“With Adobe’s amazing innovation and expertise, especially in 3D, video, vector, imaging and fonts, we can further reimagine end-to-end product design in the browser, while building new tools and spaces to empower customers to design products faster and more easily,” said Dylan Field, co-founder and CEO, Figma.

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