By Kristin Broughton
Technology giant Adobe Inc. plans to tap the brakes on share buybacks to save cash for its acquisition of design-software firm Figma, said Chief Financial Officer Dan Durn.
Adobe announced the deal Thursday, saying it would fund the $20 billion transaction using roughly half stock, half cash.
The company will continue at a minimum to buy back shares to offset dilution from issuing equity to employees, Mr. Durn said. "We'll add a meaningful amount of cash each and every quarter," he said. Adobe will also use cash on the balance sheet and, if necessary, term loans, he said.
The company, which expects the deal to close in 2023, had $3.8 billion in cash and equivalents on its balance sheet as of Sept. 2, approximately on par with the end of 2021.
During the quarter, Adobe acquired 5.1 million shares at a cost of $1.8 billion, it said Thursday.
Write to Kristin Broughton at Kristin.Broughton@wsj.com
(END) Dow Jones Newswires
September 15, 2022 22:35 ET (02:35 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.