Adobe stock

Adobe Inc. shares were headed for their worst drop in 12 years Thursday after the software company fell short with its revenue outlook for the current...

allowing them to create a bigger beachhead in the enterprise,” he continued. They see “a massive, fast-growing market opportunity” for the combined entity. Adobe executives anticipate that the transaction will close in 2023. For the fiscal fourth quarter, Adobe expects revenue of $4.52 billion, while analysts tracked by FactSet had been modeling $4.60 billion. [ADBE, -16.79%](/investing/stock/ADBE?mod=MW_story_quote)plans to acquire Figma, a maker of collaborative design tools, for $20 billion, the company announced Thursday morning in conjunction with its latest earnings numbers. “While we think the acquisition makes strategic sense, let’s be honest – it feels like Adobe was losing some momentum to Figma and it was better to buy them out and combine forces vs. The maker of Photoshop, Illustrator, and other creative software tools also delivered a mixed financial report Thursday. “In a year, we expect the merits of the deal will prove themselves out as it does present the opportunity to turbocharge Figma’s growth with the added benefit of removing the only real competitive threat to Adobe in the enterprise.” The company plans for the deal to consist of roughly half cash and half stock, per the release. Adobe expects that the newly announced deal for San Francisco-based privately held Figma will help it “reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers and developers,” executives said in a Thursday press release. For Adobe’s just-reported fiscal third quarter, the company posted net income of $1.16 million, or $2.42 a share, compared with $1.21 million, or $2.52 a share, in the year-earlier quarter. shares were headed for their worst drop in 12 years Thursday after the software company fell short with its revenue outlook for the current quarter and announced a deal that at least one analyst saw as “pricey.”