Adobe abandons $20 billion acquisition of Figma2023-12-18 14:54 by Daniela
Tags: Adobe, Figma
Following mounting pressure from regulators in the UK and EU, Adobe and Figma announced on Monday that both companies are mutually terminating their merger agreement, which would have seen Adobe acquire the Figma product design platform for $20 billion.
In November, the UK's Competition and Markets Authority (CMA) and the European Commission both cited concerns over the proposed acquisition's impact on competition. The CMA said in its provisional findings that that the merger would "eliminate competition between two main competitors." The watchdog said it was considering either blocking the deal or requiring Adobe to sell Figma's core product, Figma Design, along with Adobe XD.
Earlier on Monday, Adobe claimed that it wouldn't offer the CMA any potential remedies. "It is clear that no realistic remedy would satisfy the concerns the CMA is maintaining,” an Adobe spokesperson told Bloomberg. "We believe that the best path forward is to continue our ongoing engagement with the CMA on the merits."
"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 capitalize on our massive market opportunity and mission to change the world through personalized digital experiences."
Adobe also anticipated a potential lawsuit from the US Department of Justice in an attempt to block the deal Stateside. The company and Figma reportedly met with DOJ officials last week to try and secure approval for their merger.
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