Design software developer Canva has acquired UK-based design platform Affinity in what is its biggest acquisition yet. Affinity, which is a creative suite of software tools popular among Mac users, is expected to help the fast-growing Canva compete with Adobe. The deal is also adding up to the buildup before the Australian startup files for an IPO.
While the exact value of the deal is still unknown, Canva co-founder and Chief Operating Officer, Cliff Obrecht said in an interview with Bloomberg on Monday that it will be a mix of cash and stock and is valued at “several hundred million pounds.” Serif, a privately owned developer, built Affinity’s photo-editing, illustration and graphic design software for professional audiences . Their applications have been featured in presentations by Apple while showcasing their creative products.
Obrecht said that these apps are the “missing piece” that will enhance Canva’s range of AI-powered tools. “The Affinity team comes with an incredible caliber of talent and technology, and we’re delighted to welcome them to Canva as we enter our next phase together,” he noted in a statement released.
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The latest purchase marks another important corner for Canva which is now valued at $26 billion after its last stock sale. The company has been making moves to expand its footprint in Europe. It had previously acquired Austrian background remover tool maker Kaleido.ai in 2021 and two image providers, Pexels and Pixabay in 2019.
The decade-old startup has proven a tough competitor for Adobe, which has been the primary design provider for graphic professionals. Even as Adobe tries to amp up its AI features, growth has been slowed down after its unsuccessful bid to acquire Figma in a $20 billion deal last December.
Published - March 26, 2024 02:33 pm IST
