Adobe agrees to buy online design company Figma for $20B in cash, stock (update)
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Update 8:15am: Adds confirmation of deal. 
Adobe (NASDAQ:ADBE) agreed to buy online design collaboration company Figma for about $20 billion in cash and stock. Adobe fell 7.5% in premarket trading.
The deal is comprised of about half cash and half stock, subject to customary adjustments, according to a statement. About 6 million additional restricted stock units will be granted to Figmaâs CEO and employees that will vest over four years subsequent to closing. 
Adobe expects the cash consideration to be financed through cash on hand and, if necessary, a term loan. The deal is expected to close in 2023. In year one and two after closing, the transaction will be dilutive to Adobeâs Non-GAAP EPS, and it's expected to be breakeven in year three and accretive at the end of year three, according to a transcript of Adobe's 3Q earnings call.
Upon the closing of the transaction, Dylan Field, Figmaâs co-founder and CEO, will continue to lead the Figma team, reporting to David Wadhwani, president of Adobeâs Digital Media business. 
The Figma news was earlier reported by Bloomberg.
Allen & Company LLC is serving as financial advisor to Adobe and Wachtell, Lipton, Rosen & Katz is serving as legal advisor in connection with the transaction.