Adobe and Figma abandon planned $29.8b merger
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The news: Adobe has ended its proposed USD20 billion ($29.77 billion) acquisition of Figma, after reaching an impasse with UK and European regulators.
The numbers: Abandoning the USD20 billion merger will require Adobe to pay Figma a USD1 billion termination fee.
The context: Competition regulators in the UK and EU argued that the deal, originally announced in September 2022, would impact competition in the illustration, product design and image editing markets, and requested that the companies make remedies to satisfy their concerns. In November the UK’s Competition and Markets Authority said it would block the deal or ask for a divestment package that would include selling the companies’ largest products, Figma Design and Adobe XD.
The companies responded that the suggested divestment strategies would be “wholly disproportionate.”
In a joint press release published Monday, the two companies explained that despite continuing to see merit and “procompetitive benefits” in the deal, they cannot see a clear path forward to receive the necessary regulatory approvals in the UK and EU.
What they said: “Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently. While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalize on our massive market opportunity and mission to change the world through personalized digital experiences,” said Shantanu Narayen, chair and CEO, Adobe.
The sources: Adobe, UK Competition and Markets Authority
