Canva's biggest acquisition yet will aid in taking on Adobe
Canva, Australia's leading start-up, has recently made its biggest acquisition yet. The company has purchased Affinity, a suite of creative software, in a deal that involves both cash and stock. The value of the deal is reported to be in the hundreds of millions of pounds, as stated by Cliff Obrecht, Canva's Co-founder and COO. This acquisition signifies a major leap in Canva's expansion of its professional tools.
Serif team integration post-acquisition
The entire team from Serif, the creators of Affinity based in Nottingham, will be incorporated into Canva. Affinity's applications have been featured in presentations by Apple, showcasing their creative products. According to Obrecht, these apps are the "missing piece" that will enhance Canva's range of AI-powered tools.
Canva vs Adobe: A competitive market stance
Canva, founded roughly a decade ago, has risen as a formidable rival to Adobe, which has long been the primary software provider for graphic professionals. Despite Adobe's recent addition of AI features to its products, its shares have seen a decline of over 15% this year after an unsuccessful $20 billion deal to acquire Figma last December. On the other hand, Canva has exceeded $2.1 billion in annualized revenue and has an impressive user base exceeding 175 million.
Canva's strategy for expansion in Europe
The purchase of Affinity is Canva's seventh acquisition in Europe. Previous acquisitions include Kaleido.ai, a visual AI start-up, and image providers Pexels and Pixabay. This is part of Canva's strategy to increase their footprint in Europe. Obrecht expressed optimism about the European market potential and opportunities, noting that Canva established its European headquarters in London the previous year.
