Adobe has terminated its $20bn acquisition of design web tool application Figma due to regulatory scrutiny.
The deal was originally announced September 2022, but after failing to receive regulatory approval from UK and EU antitrust regulators Adobe announced today (18 December) that it will no longer be acquiring the company.
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In a statement, Adobe commented that there was “no clear path” towards receiving approval from the UK’s Competition and Markets Authority (CMA) or the European Commission.
Adobe will now be expected to pay a $1bn termination fee to Figma.
Adobe’s CEO Shantanu Narayen stated that the decision to terminate the deal was mutual.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” he stated.
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By GlobalData“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,” added Narayen.
Had the deal been completed, it would have been one of the largest buyouts of a private tech startup in recent history.
In October, the UK’s CMA announced it would extend its examination of the deal.
CMA inquiry chair Margot Daly said: “In taking this decision, the Inquiry Group had regard to the complexity of this case and the need to carefully consider the merger parties’ detailed submissions received in response to the Annotated Issues Statement and working papers.”
