Adobe and Figma announced that the two companies have agreed to terminate the merger agreement announced on September 15, 2022. The merger agreement was under which Adobe will acquire Figma for cash and stock consideration.
Although both companies continue to believe in the merits of the merger and its contribution to promoting competition, they believe that there is no clear path to obtaining the necessary approvals from the regulatory authorities, the European Commission and the UK Competition and Markets Authority. Thus, they agreed to terminate the agreement.
Shantanu Narayan, Adobe Chairman and CEO, commented:
While Adobe and Figma disagree with the regulator’s findings, we believe it is in our respective best interests to move forward independently. Ta. Adobe and Figma share a vision to jointly redefine the future of creativity and productivity and remain well-positioned to realize the huge market opportunity and mission to change the world through personalized digital experiences. There is no difference.
David Wadhwani, head of Adobe’s digital media business, commented:
Figma has built a great platform for product design. After over a year of experience with their team and community, I am confident in their continued innovation and growth. I am impressed with the work of Dylan and his wonderful team and look forward to working together to the delight of our mutual customers in the future.
Dylan Field, co-founder and CEO of Figma, commented:
My experience with Shantanu, David, and the Adobe team has further strengthened my belief in the merits of this transaction, but the Something different has become clear in recent months. Although we are disappointed in the outcome, we are deeply grateful to everyone who contributed to this effort and are excited to work with Adobe to find other ways to bring innovation to their communities.
The companies have entered into a termination agreement that resolves all outstanding matters related to the transaction, including Adobe’s payment of the previously agreed termination fee to Figma.