Adobe pulls out of acquisition of Figma due to ‘regulatory hurdles’

A. Adobe canceled the purchase figma, as the two companies announced this Monday (18). Option to terminate the proposed US$20 billion merger agreement, Challenges imposed by antitrust regulators in the United States and Europe.

Unveiled in September 2022, it didn’t take long for the merger between the Photoshop developer and the startup specializing in collaborative design tools to catch the attention of regulators. Organizations such as the UK Competition and Markets Authority, the European Commission and the US Department of Justice rejected the contract.

A. Reuters He recently emphasized that: Adobe didn’t address regulatory concerns over acquisitionincreases the likelihood of near-monopoly in the design software market. Regarding this, the brand argued that it could not seriously compete with Figma.

There were concerns about the damage the merger would do to innovations developed by the startup, and regulators said the company could offer more if it continued to operate independently. In addition to the authorities, Platform users expressed their opposition to the agreement.

Adobe and Figma regret termination

Adobe said in a statement that the merger Aimed to accelerate collaborative creativity on the Internet as well as bring new advances to the design market, we redefine creativity and productivity. The tech giant regretted the decision and said it would look for other ways to continue the partnership.

“Unfortunately, after working with these agencies for over a year, both companies agree that: no clear path to obtain necessary regulatory approvals “The company mutually agreed to terminate the merger agreement,” he said.

Figma said even “thousands of hours spent with regulators” were not enough to convince officials of the differences between the two businesses. Despite this, the brand commented that it will continue to develop tools that will “bridge the gap between dream and reality.”

Due to abandoning the acquisition of Figma, Adobe will have to pay a termination penalty of $1 billionequivalent to R$4.94 billion at the day’s exchange rate.