Adobe has agreed to buy business-to-business design company Figma for $20bn in cash and stock, as the software giant looks to bolster its creative tools offering.

San Francisco-based Figma, founded by Dylan Field and Evan Wallace in 2012, allows software developers and designers to collaborate remotely and design everything from slides for presentations to user interfaces on mobile apps.

The company raised $200mn in June last year at a $10bn valuation, with investment from Andreessen Horowitz and Sequoia Capital.

Adobe, whose stock is down more than 40 per cent this year, is looking to tap into the millions of customers using Figma, which enjoyed a boom during the pandemic as staff worked remotely. Its clients include Twitter, News UK, Google and Netflix.

“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, Adobe chair and chief executive. “The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity.”

Figma expects to add about $200mn in net new annual recurring revenue this year, surpassing $400mn in 2022, it said.