May 16 (Reuters) - Cloud-based designer platform Figma

is closing a deal to allow its employees and early investors to

sell their stake to new and existing investors at a valuation of

$12.5 billion, the company said on Thursday.

Figma, whose free online tool is used to create, share and

test designs for websites, mobile apps and other digital

products, has been seeking ways for employees to cash out on

their stock options and restricted stock units after its $20

billion cash-and-stock deal to be acquired by Adobe

collapsed.

Figma is widely considered as a candidate to go public after

antitrust regulators in Europe and Britain in December blocked

what would have been among the biggest acquisitions of a

software startup.

New investors including Fidelity, Franklin Venture Partners

and existing ones such as Sequoia and a16z are expected to

acquire stakes totaling about $600 million to $900 million in

the secondary sale. Figma was last valued at $10 billion in a

private funding round in 2021.

The company co-founded by tech executive Dylan Field in 2012

is cash flow positive and has expanded its offerings to include

a broader platform for team collaborations with artificial

intelligence features.

In January, Figma offered more equity for employees at a $10

billion valuation. Those who decided to leave the company by

Jan. 31 were entitled to three months pay in cash, with all

their equity vested no matter how long they had been with the

company.