From The Verge: Following mounting pressure from regulators in the UK and EU, Adobe and Figma announced on Monday that both companies are mutually terminating their merger agreement, which would have seen Adobe acquire the Figma product design platform for $20 billion.
As a result of the termination, Adobe will be required to pay Figma a reverse termination fee of $1 billion 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 chair and CEO Shantanu Narayen in a statement. “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.”
Regulators cited Adobe’s near-monopoly in the design software market as they pushed back on the deal. By purchasing Figma, a fast-growing product design platform that’s now more popular than Adobe’s rival XD application, regulators worried that Adobe would harm innovation that could have occurred should Figma be allowed to flourish independently. Designers have expressed similar worries since the merger was announced in September 2022, but Adobe pushed back on those claims throughout the various ongoing probes.
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