Adobe, the US-based software giant that develops software for creating and promoting content and managing documents, on Thursday announced plans to acquire Figma, a leading developer of collaborative design software, for $20 billion in cash and stock. The combined strengths of the two leading design firms will usher in a new era of collaborative creativity.

Figma, which was founded in 2012, develops and sells a range of cloud-based design software that allows the IT team, to collaborate in real-time. Figma’s design solution competes with Adobe’s XD program.

According to the press release, Adobe plans to integrate some of the features from its other products, such as illustration, photography, and video technology, into Figma’s cloud-based design software platform. The US software giant develops and sells a range of software services for photo, creative studio, and video professionals, like Adobe Photoshop, Adobe Illustrator, Adobe Creative Suite, Adobe Premiere Pro, and more.

The deal is expected to accelerate the delivery of Adobe’s creative cloud technologies, making the creative process more productive and accessible to more people.

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

CEO Narayen also added: “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”
As part of the deal, Figma CEO and co-founder Dylan Field will continue to run the company. He will report to David Wadhwani, which currently the President of Adobe’s Digital Media business.

The deal, which is still subject to approval from Figma’s shareholders, is expected to close next year. Adobe’s stock dropped more than 9 percent before the market open on Thursday.