Adobe announced it was to acquire Figma for approximately US$20 billion in cash and stock in September 2022, in one of the year’s most significant technology merger and acquisition announcements.
The companies said at the time that their combined product portfolio would have a rare opportunity to “power the future of work by bringing together capabilities for brainstorming, sharing, creativity and collaboration and delivering these innovations to hundreds of millions of customers”.
But in a statement in December 2023, the two companies announced that they had 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 from the UK’s Competition and Markets Authority.
“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 Shantanu Narayen, Chair and CEO of Adobe. “While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalise on our massive market opportunity and mission to change the world through personalised digital experiences.”
“Figma has built an incredible product design platform, and I am confident in their continued innovation and growth after spending more than a year with their team and community,” said David Wadhwani, President of Adobe’s Digital Media Business. “I have been impressed with Dylan and his incredible team at Figma and will look for ways to partner to delight joint customers in the future.”
“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,” said Dylan Field, Co-founder and CEO of Figma. “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.”
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