Software stocks have recently plunged on worries about AI threats, but Canva moved the other way by stepping up its acquisition strategy to respond to the market. Canva said on Feb. 24 it acquired 2D animation software company Calvary and advertising AI startup MangoAI.

Calvary is a four-person startup that offers subscription-based motion graphics production software. MangoAI has technology specialised in producing advertising videos. Canva plans to use the two companies' technology to compete with Adobe After Effects.

Canva plans to integrate Calvary's technology into its existing platform and Affinity, an application for professional designers. MangoAI will be built into Canva Grow, an enterprise solution priced at $250 per person per year, providing functions to analyse and optimise advertising video performance.

Cliff Obrecht (Cliff Obrecht), Canva's co-founder and chief operating officer, said, "Our longstanding philosophy is that creative tools should be open to everyone." He said, "Affinity surpassing 5 million downloads within months of launch is an example showing that trend." He added, "With Calvary joining, we can now offer everything from vector design to motion design within a single integrated creative product suite." He added, "It will be an opportunity to present a more efficient alternative to professional designers who have relied on complex and expensive individual tools."

He also said, "The acquisition of MangoAI will also accelerate development of next-generation AI products for marketing and creative teams." He said, "If MangoAI's algorithms and learning system are combined following MagicBrief, we can build an environment that continuously improves creative work based on real-time performance data."