Canva acquires design software provider Affinity
Sometimes a deal can originate glamorously—at a glittering hotel, or high-powered conference. And sometimes, it all starts with something far more relatable—a DM.
Cameron Adams, Canva cofounder and chief product officer, didn’t know anyone at creative design software provider Affinity. But he thought the company could be a great fit for Canva, so he went for it, directly messaging the company on LinkedIn.
“They don't have a big online, social presence,” Adams told Term Sheet. “I had to track them down! I eventually got in touch with [Ash Hewson], the MD and CEO. We started talking and things evolved very rapidly. A week later, we were in Nottingham to meet Ash and a bunch of the team.”
Fast-forward seven weeks from that original DM, and it’s official: Canva is acquiring Affinity (and its parent company, Serif). Though Canva isn’t disclosing financial terms, Adams told Term Sheet that it’s the company’s fastest-ever deal. To what does he attribute the speed of the deal? In this case, Adams says that there was no tussling over small details.
“If you start doing that, you can lose sight of the bigger picture, which is the two of us coming together, where one plus one equals ten…We actually very quickly reached an initial agreement before we got into the full contracts. We pretty much sealed the deal, after two days in Nottingham."
Canva, originally focused on yearbooks, is one of Australia's first unicorns. To date, the company has raised more than $570 million, and its investors include Bessemer Venture Partners, Felicis, and Dragoneer, among many others, according to Crunchbase. The Affinity acquisition is also a step towards Canva's next chapter, Adams said.
“The first decade of Canva was very much about empowering individuals, small businesses, and growing teams,” said Adams. “And the next decade is very much about empowering large organizations and teams.”
Affinity’s software is a longstanding favorite among design professionals, and Canva’s acquisition of the Nottingham, U.K.-based company marks Canva’s increasing focus on business users.
"We've always firmly believed that professional designers have their place, and that the two sides of the coin need to work together,” said Adams.
Over the last few years, Canva’s been building up its resume as an acquirer. Dating back to 2019, Canva’s acquisitions have included Flourish, Kaleido, Smartmockups, Pexels, and Pixabay. Adams says he doesn’t consider Canva to be a particularly acquisition-hungry company though.
"I'm not sure what the run rate of other companies is, but I don't feel like we're hugely acquisitive. We've done about seven now,” said Adams. "And most of those have actually been in Europe. We found a really great bench of product-builders. They're particularly folks who build a viable business that quickly reaches profitability, and that enables them to fuel themselves.”
One thing that’s clear is Canva’s direct, no-beating-around-the-bush approach to M&A, something that cofounder and COO Cliff Obrecht addressed in a 2023 interview with 20VC’s Harry Stebbings. “I’m just going to be super transparent with you from Day 1,” Obrecht said of Canva’s acquisition strategy.
Adams laughs, when I mention the reference: “I’ve picked up a few tips off Cliff over the years.” And it’s easy to see how it played out with Canva’s latest deal. “Our first meeting, I just laid out for them–that we were really interested in fully acquiring Affinity and making it a true part of Canva. I think they were a bit taken aback by that forthrightness, but it really helped us get on the same page.”
Not bad for a deal that began as a DM.
See you tomorrow,
Allie Garfinkle
Twitter: @agarfinks
Email: alexandra.garfinkle@fortune.com
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This story was originally featured on Fortune.com
