Canva Inc., an Australian unicorn, has completed its largest purchase to date, and acquired the Affinity suite of creative tools, to enhance its position in the competitive graphic design software industry.
With this calculated action, Canva is stepping up its aggressive attempt to challenge Adobe Inc., the industry leader in graphics software solutions.
The acquisition, which is estimated to be worth “several hundred million pounds,” consists of both stock and cash. Cliff Obrecht, co-founder, and chief operating officer of Canva, highlighted the importance of the acquisition and stressed how it will strengthen the company’s competitive edge and increase its selection of professional tools, as Bloomberg originally reported.
With the acquisition, Canva now employs the whole 90-person staff of Serif, the British business that created the Affinity suite. Popular with Mac users, Affinity’s package of photo-editing, publishing, and illustration software enhances Canva’s current line of AI-powered solutions.
The ability of Affinity’s apps to improve Canva’s online workspaces was highlighted by Obrecht, who called them the “final piece in our jigsaw.”
What you should know about Canva’s acquisitions
With its ascent over the last ten years, Canva has challenged Adobe’s hegemony in the graphic design software industry and established itself as a legitimate rival. With more than 175 million users and a revenue of more than $2.1 billion annually,
Canva’s user-friendly solutions, which are designed for those without formal design knowledge, have contributed to its considerable development.
The purchase of Affinity comes after Canva’s deliberate efforts to grow its business in Europe, where it has already bought seven firms, including picture suppliers Pixabay and Pexels and visual AI startup Kaleido.ai.
Canva established its European headquarters in London last year with the goal of taking advantage of the region’s great development potential.
Canva is still focused on accelerating its growth trajectory, despite investors’ long-standing conjectures over the company’s intentions for a possible IPO. In the highly competitive graphic design software business, intentions for growth and innovation are further demonstrated by a recent $1.5 billion secondary share offering.
As Canva keeps developing and broadening its product line, the company’s acquisition of Affinity marks a critical turning point in its fight against Adobe’s hegemony and solidifies its place as a major force in the market. With the inclusion of Affinity’s creative software package, Canva is well-positioned to continue disrupting the market and drawing in more users who are looking for strong and user-friendly design tools.
In September 2021, private investors placed Canva, which is led by co-founder and CEO Melanie Perkins, at a $40 billion valuation.
When Perkins, Cliff Obrecht, who is now married, and Cameron Adams established Canva in 2013 in Sydney, Australia, investors were skeptical because of the company’s location.
She owns an estimated 18% interest, just like Obrecht. More than 80% of the couple’s stake will be donated to the Canva Foundation for philanthropic purposes.
