By Jess Jones
Adobe and Figma have ditched their $20bn (£16bn) tie-up after struggling to secure regulatory approval in both the UK and Europe.
In astatement released on Monday, Adobe said both companies still believe in the merits of the deal but they have “mutually agreed to terminate the transaction” as there is “no clear path” to getting approval from the UK’s Competition and Markets Authority (CMA) and the European Commission.
The Photoshop creator is now required to pay Figma a reverse termination fee of $1bn (£0.8bn) in cash.
“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 Adobe’s chair and chief executive, Shantanu Narayen.
“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,” Narayen added.
Last month, the CMA provisionally found that the proposed acquisition of Figma, initially announced 15 months ago, could harm competition in the country’s digital design sector, leading to fewer choices for designers of digital apps, websites and other products.
But Adobe and Figma believe the watchdog’s assessment is too broad and anAdobe exec recently accused it of failing to properly judge the size of the market.
Figma chief executive Dylan Field said: “Going through this process with Shantanu, David and the Adobe team has only reinforced my belief in the merits of this deal, but it’s become increasingly clear over the past few months that regulators don’t see things the same way.
“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.”
