Adobe has officially tapped out of the $20 billion acquisition for Figma, following pressure from the UK and EU regulators.
Adobe, Figma Mutually Terminates Merger
Last 2022, Adobe formally announced its intention to acquire Figma. However, the merger was met with regulatory reviews by the Competition and Markets Authority (CMA), the European Commission, and the U.S. Department of Justice.
"Unfortunately, after over a year of engagement with these agencies, both companies agree that there is not a clear path to receiving the necessary regulatory approvals and have agreed to mutually terminate the merger agreement," Adobe announced in a blog post.
CEO and chair, Shantanu Narayen disclosed that both companies have "strongly disagree" with the recent regulatory findings. However, they also believe it will be best to move forward independently.
The companies have already signed the termination agreement and Adobe is required to pay Figma a $1 billion termination fee.
Adobe, Figma's Future in Graphic Design Industry
Although the much-awaited acquisition has been called off, Adobe clarified that it will continue to look for new ways to partner with Figma in the future.
"While we're disappointed in the outcome, I am deeply grateful to everyone who has contributed to this effort and excited to find other ways to innovate on behalf of our respective communities with Adobe," Figma CEO and co-founder, Dylan Field stated.
Meanwhile, Adobe is looking forward to continuing its work on the innovation that was released in 2023 like Firefly, Creative Cloud, Express, and Acrobat.
Related Article : UK Regulators Warn Adobe of Harming Competition With Figma Acquisition
