Adobe has decided to rescind its acquisition offer of $20 billion dollars to acquire Figma. Since the announcement of the intent to acquire Figma by Adobe in September 2022, there have been multiple hurdles. Adobe faced pushback from the EU over antitrust violations.
In a statement released by both Adobe and Figma, the two stated ““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.” The European Commision has since ended their inquiry since news of the canceled merger was announced.
Both companies have signed a termination agreement wherein Adobe will pay Figma a $1 billion termination fee. This is not the first time we’ve seen a tough regulatory environment for acquisitions in Europe and it probably won’t be the last.
For now, competition thrives and markets continue to face innovation. As things develop, we will be sure to keep you in the loop!
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