Adobe and Figma call off $20 Billion merger over regulatory hurdles

Adobe and Figma have mutually decided to cancel their previously announced merger agreement, according to recent announcements from both companies. The merger, originally announced on September 15, 2022, would have seen Adobe acquiring Figma for a sum of 20 billion dollars.

Dylan Field, co-founder and CEO of Figma, stated in the announcement that “despite thousands of hours spent with regulators around the world detailing differences between our businesses, our products, and the markets we serve, we no longer see a path toward regulatory approval of the deal”.

Shantanu Narayen, the chair and CEO of Adobe, also commented that “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 companies have now signed a termination agreement, resolving all outstanding matters related to the transaction. This includes Adobe paying Figma the previously agreed upon termination fee.

The future remains uncertain for Adobe in the UI/UX design field. It is unclear whether Adobe will revive Adobe XD, develop a new competitor to Figma, or simply focus on its existing software and offerings.