Adobe and Figma Terminate $20 Billion Merger Agreement
Software company Adobe and web-first design platform Figma have mutually agreed to terminate their merger agreement, valued at approximately $20 billion. The decision comes in response to regulatory concerns in the European Union and the UK, with both companies stating that there is no clear path to receive necessary regulatory approvals.
Key Points:
- Regulatory Concerns: Adobe and Figma expressed disagreement with recent regulatory findings but decided to terminate the merger due to challenges in obtaining approvals from the European Commission and the UK’s Competition and Markets Authority.
- Vision for the Future: The companies initially aimed to redefine the future of work by combining capabilities for brainstorming, sharing, creativity, and collaboration. The termination allows them to move forward independently.
- Termination Fee: As part of the termination, Adobe will reportedly pay a termination fee of $1 billion to Figma.
- Market Position: Adobe remains confident in its market position, emphasizing its ability to capitalize on a massive market opportunity and its mission to change the world through personalized digital experiences.
- Figma’s Platform: Figma’s design platform is widely used by companies, including Uber, Coinbase, and Zoom.
Quotes:
- Shantanu Narayen, Chair and CEO of Adobe: “Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently.”
- 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.”
- 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.”
The termination of the merger agreement allows both Adobe and Figma to pursue independent paths and focus on their respective growth and innovation strategies.
