American technology companies ditch plans for tie-up after meeting opposition from watchdogs including the UK’s Competition and Markets Authority
Adobe is ditching its planned $10 billion takeover of Figma, the app design business, after the deal’s future was thrown into doubt by UK and European competition watchdogs, which said they were considering blocking it.
In a statement, the US technology companies said they had mutually decided not to press on with the merger, “based on a joint assessment that there is no clear path to receive necessary regulatory approvals”.
Adobe said in a filing with the UK’s competition authority on Monday that it did not want to restructure the acquisition to get it over the line, because any such changes would not “preserve the benefits” of the transaction.
It will now pay Figma a $1 billion break-up fee, as set out in the agreement they made when the tie-up was agreed 12 months ago.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently.”
Shantanu Narayen, chairman and chief executive – Adobe
Dylan Field, Figma’s chief executive and co-founder, said it was “not the outcome we had hoped for” but that approval looked unlikely, “despite thousands of hours spent with regulators around the world detailing differences between our businesses, our products and the markets we serve”.
Danny Rimer of Index Ventures, the first big venture capital fund to back Figma, said: “We have never been more bullish on Figma and their opportunity to capitalise on the explosive demand for product design and development software. They will thrive as an independent company, with an incredible team, clear mission and focus.”
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