Adobe and co-design platform Figma have jointly announced the termination of their previously agreed-upon merger deal. The initial agreement, where Adobe intended to acquire Figma for approximately $20 billion in cash and shares, hinged upon regulatory approval—a milestone anticipated after September of the preceding year.
Regulatory Hurdles and Mutual Agreement
However, despite the passage of fifteen months and the completion of the regulatory review process, the companies have reached an impasse, unable to secure the necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.
Figma’s co-founder, Dylan Field, elucidated, “While both Adobe and Figma remain steadfast in their belief regarding the merits and competitive advantages of the proposed merger, a joint assessment has led to the mutual decision to terminate the transaction.”
Resolution and Future Independence
This decision, grounded in the unattainability of requisite regulatory nods, has led the companies to part ways. Shantanu Narayen, chairman and CEO of Adobe, echoed this sentiment, affirming, “Both Adobe and Figma express dissent with the regulators’ findings. However, in our collective interest, we opt to progress autonomously.”
An already signed termination agreement has effectively resolved all lingering matters between the entities, including Adobe’s fulfillment of the previously agreed-upon termination fee to the Figma platform.
Future Prospects and Initial Vision
NIX Solutions notes that the initial vision held by Adobe and Figma foresaw a convergence of their technologies, promising a new epoch of co-creation that would redefine creativity and productivity. Industry experts anticipated this to be the most substantial acquisition of a private software company in history. Despite this optimistic outlook, the failure to obtain regulatory approval has led to the termination of this monumental merger.