Adobe abandons acquisition of Figma due to lack of regulatory approval, plans to pay Figma a $1 billion termination fee

Adobe's planned acquisition of the design management tool ' Figma ' for $20 billion (approximately 2.8 trillion yen) has been abandoned due to lack of approval from regulatory authorities in the EU and UK. I made it clear that I did it.

Adobe - Adobe and Figma Mutually Agree to Terminate Merger Agreement
https://news.adobe.com/news/news-details/2023/Adobe-and-Figma-Mutually-Agree-to-Terminate-Merger-Agreement/default.aspx

Figma and Adobe are abandoning our proposed merger | Figma Blog
https://www.figma.com/ja/blog/figma-adobe-abandon-proposed-merger/

Adobe gives up on $20 billion acquisition of Figma | Ars Technica
https://arstechnica.com/tech-policy/2023/12/adobe-gives-up-on-20-billion-acquisition-of-figma/

In September 2022, Adobe announced that it would acquire Figma for $20 billion. Adobe was developing a design tool called ``Adobe XD,'' and Figma was its competitor. Yuki Yamashita, head of Figma's product department, said, ``The Figma brand will remain the same. Nothing will change for you,'' and it is said that the Figma brand will remain even after the acquisition. Ta.

Adobe acquires the design tool 'Figma' for over 2 trillion yen, the Figma brand is scheduled to continue - GIGAZINE

However, there was also criticism that Adobe's acquisition of Figma would result in Adobe becoming almost the dominant company in the design industry. In February 2023, it was reported that the U.S. Department of Justice is preparing a lawsuit on suspicion of violating antitrust laws. It has also been revealed that EU regulators will conduct an investigation in July 2023 and will file a lawsuit based on the results in November 2023.

It turns out that EU regulators plan to file a lawsuit for violation of antitrust laws regarding Adobe's 3 trillion yen acquisition of Figma - GIGAZINE

Margrethe Vestager, Commissioner for Competition at the European Commission, said: 'The merger of Adobe and Figma will end all competition between the two companies and prevent all future competition. 'Studies have shown that Adobe's acquisition of Figma will lead to higher prices, lower quality, and less choice for customers.'

Furthermore, on November 29, 2023, the UK Competition and Markets Authority (CMA) announced the result of a study stating that ``Adobe's acquisition of Figma may hinder market competition.'' Adobe claims that the CMA's findings 'take an irrational approach in gathering and assessing evidence and contain significant errors of law and fact.' In addition, Adobe proposed to regulators a compromise plan to make the acquisition a reality, such as ``not including Figma in the Creative Cloud package'' and ``selling competitor Adobe XD.''

Adobe, aiming to acquire Figma, is reportedly making proposals to regulators such as ``not including Figma in the Creative Cloud package'' and ``selling competitor Adobe XD'' - GIGAZINE

However, Adobe announced on December 18, 2023, ``Adobe and Figma have announced that they have entered into a mutual agreement to terminate the merger agreement announced on September 15, 2022.'' I made it clear that I had given up.

Adobe CEO and Chairman Shantanu Narayan said, 'While Adobe and Figma strongly disagree with the regulator's findings, we believe it is in our respective best interests to move forward independently. Adobe and Figma are committed to creativity. 'We have shared a vision to redefine the future of productivity together, and we remain well-positioned to take advantage of the huge market opportunity and mission to transform the world through personalized digital experiences.' I am commenting.

Dylan Field, co-founder and CEO of Figma, said: ``Fifteen months after the regulatory review process began, Figma and Adobe are confident that we have a clear path to regulatory approval of our acquisition proposal.'' 'I'm excited to see what the future holds, and I can't thank the community enough for supporting us. Figma's best and most innovative days are yet to come.' To be continued. See you in 2024!''

As stated in the contract with Figma, Adobe plans to pay Figma a contract cancellation fee of 1 billion dollars (approximately 140 billion yen).