Canva Acquires Affinity
Industry Landscape Changes Draw 'Attention'
Australian online design platform company Canva is closely trailing industry leader Adobe. Canva has set a goal to strengthen generative AI capabilities by acquiring the graphic tool 'Affinity,' regarded as a substitute for Adobe programs, to compete against Adobe.
As the unicorn (a private company valued at over 1 trillion won) Canva, which has become Adobe's biggest headache, continues to expand, attention is focused on what changes might occur in the industry landscape.
On the 25th (local time), Bloomberg reported, "Canva has decided to acquire the Affinity product suite, which is serviced by the UK-based startup Serif," adding, "This is the largest deal in Canva's history and will be a milestone in Canva's expansion into various professional tools." Cliff Obrecht, co-founder of Canva, said in an interview with Bloomberg released that day, "The value of this cash-and-stock mixed deal amounts to hundreds of millions of pounds." He added, "This acquisition completes the final piece of the puzzle."
Launched in Australia in 2012, Canva is a program that helps even beginners design graphics like experts. With its easy-to-use interface and collaboration features, it has succeeded in gathering a staggering 170 million monthly users worldwide. The company's valuation reaches 40 billion dollars. Canva is considered a strong competitor to Adobe.
Affinity has been recognized as an alternative to Adobe Illustrator. It has received positive reviews among users for supporting the latest features in Apple's content development environment.
Affinity is expected to be used to enhance Canva's generative AI-based tools. To this end, a team of 90 people responsible for Serif's portfolio, including photo editing and illustration, will join Canva. Adobe has incorporated generative AI features into its entire product lineup since last year.
As an 'industry giant,' Adobe has failed to increase its market dominance due to opposition from various regulatory authorities. For example, its $20 billion acquisition of the cloud-based design platform company Figma fell through last December. The European Union (EU) Commission and the UK Competition and Markets Authority (CMA) expressed concerns, saying, "It could hinder fair market competition." Adobe's stock price has fallen about 13% since the first trading day of this year.
On the other hand, Canva has continued to grow. It has expanded its presence in the European market by acquiring a total of seven companies, including the European AI startup Kaleido AI and image providers Pexels and Pixabay. Canva also established its European headquarters in London last year. Bloomberg added, "Canva continues its efforts to compete with Adobe."
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