Adobe
has decided to abandon its plan of acquiring
Figma
for $20 billion as both companies could not find a clear path to obtain approval from the regulators of the UK and the
European Union
.
Why Adobe is calling off the acquisition
In the wake of increasing regulatory pressure, both companies have come to a resolution, mutually agreeing upon terminating the merger agreement, resolves all aspects of the termination of the Adobe-Figma merger.
The deal announced last year has been scrutinised heavily by the regulators due to its size and impact on the competition. The
US Department of Justice
has been examining Adobe and Figma's deal throughout the 2023. The UK and the European Union have launched in-depth investigations on the acquisition, and the findings stated that the merger would eliminate competition between two main competitors.
Adobe decided not to offer any potential solutions to the
CMA
regarding its acquisition of software company Figma. The CMA's concerns cannot be addressed by any realistic remedy, according to Adobe. Adobe and Figma met with DOJ officials last week to secure approval for their merger amidst potential lawsuits from the US Department of Justice. The
European Commission
had warned Adobe that the acquisition could reduce competition in global markets for interactive and creative design software. Adobe had indicated that it would offer possible remedies, but that no longer remains the case.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” said Adobe chair and CEO
Shantanu Narayen
in a statement. “While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalise on our massive market opportunity and mission to change the world through personalised digital experiences.”
Adobe to pay $1 billion to Figma for ‘walking away’ from the deal
Adobe will pay a $1 billion termination fee to Figma, as the company failed to secure regulatory approval.
“Figma and Adobe have reached a joint decision to end our pending acquisition. It’s not the outcome we had hoped for, but despite thousands of hours spent with regulators around the world detailing differences between our businesses, our products, and the markets we serve, we no longer see a path toward regulatory approval of the deal,” said Dylan FieldCo-founder and Chief Executive Officer of Figma.
English (US) ·