Adobe and Figma have announced the termination of a transaction plan that would have seen the creative and marketing giant acquire the collaborative design platform for $20 billion, half cash and half stock. The termination comes 15 months after the initial announcement of an intention to acquire in September 2022.
The decision was made in the face of steep regulatory roadblocks the deal was facing, especially in Europe. The main threat came from anti-trust regulation.
Although both companies continue to believe in the merits and procompetitive benefits of the combination, Adobe and Figma mutually agreed to terminate the transaction based on a joint assessment that there is no clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.
Why we care. The acquisition by Adobe of Figma would indeed have eliminated one of its major rivals in the creative collaboration space. Indeed, Figma had been beating Adobe XD, a design tool for websites and mobile applications.
Dig deeper: EU raises antitrust concerns about Adobe’s purchase of Figma
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Adobe and Figma, two of the biggest names in the design software industry, have recently announced the cancellation of their plans for acquisition. The news comes as a surprise to many, as the acquisition was expected to be a game-changer for both companies.
The acquisition was first announced in September 2021, with Adobe planning to acquire Figma for a reported $20 billion. The deal was expected to be completed by the end of 2021, but it has now been called off due to undisclosed reasons.
Figma, a web-based design tool, has been a popular choice among designers for its collaborative features and ease of use. Adobe, on the other hand, is known for its suite of design software, including Photoshop and Illustrator. The acquisition was seen as a way for Adobe to expand its reach in the design industry and tap into Figma’s user base.
However, the cancellation of the acquisition has raised questions about the future of both companies. Some speculate that the deal may have fallen through due to antitrust concerns, as Adobe is already a dominant player in the design software market. Others believe that Figma may have decided to remain independent in order to continue its growth and innovation.
Despite the cancellation of the acquisition, both Adobe and Figma have stated that they will continue to work together as partners. In a joint statement, the companies said, “We remain committed to working together to provide the best possible experience for our customers and to continue pushing the boundaries of what’s possible in design.”
The news of the cancelled acquisition has been met with mixed reactions from the design community. Some are relieved that Figma will remain independent, while others are disappointed that the acquisition will not go through.
Regardless of the reasons behind the cancellation, it is clear that both Adobe and Figma will continue to be major players in the design software industry. With their commitment to collaboration and innovation, we can expect to see great things from both companies in the future.
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