Canva acquires design platform Affinity to offer Adobe-like editing tools

WEB DESK: Australian design software developer Canva has made its largest acquisition to date by acquiring UK-based design platform Affinity.

Affinity, known for its suite of creative tools popular among Mac users, is expected to bolster Canva’s competitiveness against industry giant Adobe. This move comes as Canva gears up for an initial public offering (IPO), adding momentum to its growth trajectory.

While the precise value of the acquisition remains undisclosed, Cliff Obrecht, Canva’s co-founder and Chief Operating Officer, revealed in an interview with Bloomberg that the deal comprises a combination of cash and stock, valued at “several hundred million pounds.”

Affinity, developed by privately owned Serif, offers professional-grade photo-editing, illustration, and graphic design software. Its applications have gained recognition, featuring prominently in Apple presentations showcasing creative products.

Obrecht emphasized the strategic importance of Affinity’s offerings, labeling them the “missing piece” that will enrich Canva’s suite of AI-powered tools. In a released statement, he expressed enthusiasm for integrating Affinity’s talent and technology into Canva’s ecosystem as they embark on their next phase together.

This acquisition represents a significant milestone for Canva, which now boasts a valuation of $26 billion following its latest stock sale.

With a focus on expanding its presence in Europe, Canva had previously acquired Austrian background remover tool maker Kaleido.ai in 2021, as well as image providers Pexels and Pixabay in 2019.

Founded a decade ago, Canva has emerged as a formidable competitor to Adobe, the longstanding leader in design software for graphic professionals.

Despite Adobe’s efforts to enhance its AI capabilities, its growth trajectory faced setbacks, notably with the failed attempt to acquire Figma in a $20 billion deal last December.