Updated December 18th, 2023 at 19:00 IST
Adobe terminates $20 billion Figma acquisition after regulatory hurdles
The deal, initially announced in September of the previous year, aimed to improve Adobe's position in the cloud-based design sector.
Software giant Adobe has abandoned its $20 billion cash-and-stock acquisition of cloud-based designer platform Figma, citing insurmountable hurdles in obtaining regulatory approvals from antitrust authorities in the European Union (EU) and the United Kingdom. The decision comes after the UK's competition watchdog announced on Monday that Adobe had not proposed viable remedies to address regulatory concerns related to the proposed buyout.
Adobe's CEO, Shantanu Narayen, expressed disagreement with the recent regulatory findings but stated, "Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently."
The deal, initially announced in September of the previous year, aimed to improve Adobe's position in the cloud-based design sector. However, the failure to navigate through regulatory challenges has led both companies to reconsider the acquisition. The termination of the deal follows a trend of increased regulatory scrutiny in the tech industry, particularly concerning antitrust issues.
As a result of the halted acquisition, Adobe faces ongoing challenges, including a forecasted annual and quarterly revenue below expectations. The company attributes this shortfall to tightened client spending, which continues to impede its business growth.
(With Reuters inputs)
Published December 18th, 2023 at 19:00 IST