Big Board Alerts

December 18, 2023
Figma and Adobe abandon merger amidst regulatory red tape

After a 15-month regulatory review process, Figma and Adobe announced today (Dec. 18) they will be abandoning their proposed merger.

In a statement on the Figma website, co-founder Dylan Field stated: “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.”

After an intense 15 months of review, today Adobe and Figma have decided to end our pending merger, as we no longer see a path toward regulatory approval of the deal.https://t.co/sHuUsW9sR2

— Dylan Field (@zoink) December 18, 2023

In a statement made by Adobe, the software company said that although both companies were committed to the merger, seeing many merits to the combination, they made a joint assessment that there is no clear path to receive regulatory approval from the European Commission and the UK Competition and Markets Authority. Bloomberg also reported that the deal would begin to receive scrutiny in America.

“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 Shantanu Narayen, CEO of Adobe. “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.”

The termination of the merger means that Adobe will be required to pay Figma a reverse termination fee of $1 billion in cash, reports The Verge. The Adobe statement acknowledges this and says that the companies have signed an agreement that resolves “all outstanding matters from the transaction, including Adobe paying Figma the previously agreed upon termination fee.”

What is Figma?

Figma is a web-based design tool that has many uses. It has particularly found success in the world of web development as a User Interface design tool. Launched in 2016, it holds a key difference from many competitors in that it is entirely web browser-based, allowing for seamless collaboration.

 

The post Figma and Adobe abandon merger amidst regulatory red tape appeared first on ReadWrite.

 

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