Key Points:
- Canva acquired the Affinity suite of creative software, its largest acquisition, valued at “several hundred million pounds.”
- Canva strengthens its position in the competitive landscape against industry giant Adobe Inc. The acquisition complements Canva’s user-friendly products.
- Canva has experienced rapid growth, surpassing $2.1 billion in annualized revenue and acquiring over 90 million new users in the past 18 months.
- The company’s expansion in Europe includes strategic acquisitions and the establishment of its European headquarters in London.
Canva Inc., Australia’s most valuable startup valued at $26 billion, has completed its largest acquisition by acquiring the Affinity suite of creative software popular among Mac users. The deal, a combination of cash and stock, is valued at “several hundred million pounds,” according to Canva co-founder and Chief Operating Officer Cliff Obrecht.
The acquisition marks a significant milestone for Canva as it seeks to strengthen its position in the competitive landscape of creative software, particularly against industry giant Adobe Inc. With the addition of Affinity’s portfolio, which includes photo-editing, publishing, and illustration software, Canva aims to enhance its range of professional tools and expand its offering of online workspaces. Affinity’s suite of apps has garnered acclaim and is featured in Apple Inc.’s presentations of creative products.
Founded approximately a decade ago, Canva has emerged as a formidable competitor to Adobe. It is known for its user-friendly products tailored to individuals without formal design training. With over 175 million users and annualized revenue surpassing $2.1 billion, Canva has experienced rapid growth, adding over 90 million new users in the past 18 months, partly attributed to its integration of AI features.
While Canva has not disclosed plans for an initial public offering (IPO), investors have long speculated about its potential debut in the public markets. The company recently completed a $1.5 billion secondary share sale, indicating strong investor interest and confidence in its prospects.
In addition to the Affinity acquisition, Canva has strategically expanded its presence in Europe through a series of acquisitions, including visual AI startup Kaleido.ai and image providers Pexels and Pixabay. With its European headquarters established in London, Canva is poised to capitalize on the region’s high potential and growth opportunities.
Cliff Obrecht emphasized Canva’s commitment to organic growth in Europe, highlighting the company’s ambition to double down on its regional expansion efforts. As Canva continues to innovate and expand its product offerings, the acquisition of Affinity represents a significant step ahead in its mission to empower individuals and businesses with creative tools.
