San Francisco, Sep 15 (IANS): Software major 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.A

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.

"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.