(Boursier.com) — Adobe fell 16.8% last night on Wall Street following the announcement of a $20 billion bid for Figma. The stock continued its post-market correction. Brent Thill, an analyst at Jefferies Equity Research, said of this stock market reaction and market sentiment on ‘tech’: “I’ve never seen such a level of investor hatred.” Adobe, an American software group, yesterday confirmed an agreement to acquire Figma, a specialist in collaborative tools for design and conception. This is a record operation for Adobe, amounting to 20 billion dollars in cash and shares. The combination of Adobe and Figma should open a new era in collaborative creativity. Under the definitive agreement, Adobe has agreed to acquire Figma for approximately $20 billion, half in cash and half in stock, subject to customary adjustments. Approximately 6 million additional restricted stock units will be granted to Figma’s CEO and employees, to vest over four years after closing. Adobe expects the cash consideration to be funded by cash and, if necessary, a term loan. The transaction is expected to close in 2023, subject to receipt of required regulatory clearances and approvals and satisfaction of other closing conditions.
For its third fiscal quarter, Adobe announced adjusted earnings per share of $3.4, compared to a consensus of $3.33 and a level of $3.11 a year earlier. Quarterly revenues stood at $4.43 billion, in line with market expectations, against $3.94 billion a year earlier. Brent Thill believes the results are correct and does not understand yesterday’s stock market crash, with a higher value wiped out than the Figma deal, according to comments collected by Yahoo! Finance. For the quarter started, the Californian group expects adjusted earnings per share of $3.5 and revenues of $4.52 billion. The consensus was $3.47 adjusted EPS and $4.6 billion in revenue. A year earlier, adjusted EPS was $3.2 for revenue of $4.11 billion.
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