What’s the news: Adobe abandoned the $20 billion deal with cloud-based designer platform Figma on December 18, 2023. As per a press release, the two companies mutually agreed to terminate the transaction after jointly assessing that “there is no clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.”
The acquisition deal, which cost Adobe $20 billion in cash and stock, was first announced last September. This was followed by the European Commission, an executive institution within the European Union, starting an in-depth investigation into the deal in August this year voicing concerns that the acquisition by Adobe of its “direct competitor” will reduce competition in global markets.m
Shantanu Narayen, chair and CEO, Adobe said that the companies “strongly disagreed” with the regulators but agreed to shelve the deal regardless. Dylan Field, Co-Founder and CEO, of Figma said, “…it’s become increasingly clear over the past few months that regulators don’t see things the same way.”
The companies signed a termination agreement resolving all outstanding matters from the transaction, including Adobe paying Figma the previously agreed upon termination fee which, according to Reuters, amounts to $1 billion.
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