As a graphic designer and UI/UX rookie in training, I am disappointed to report that the acquisition of Figma by Adobe did not come through. On Monday, December 18, they announced that they had mutually agreed to terminate their merger agreement following the mounting pressure from regulators in the EU and UK.
Moreover, both companies have signed a termination agreement that resolves all outstanding matters from the transaction, including Adobe paying Figma the previously agreed-upon termination fee of $1 Billion in cash.
Figma is a cloud-based design and prototyping tool used for collaborative interface design and user experience (UI/UX) design. The announcement came after the decision based on their shared assessment, indicating an absence of a clear pathway to secure the required regulatory approvals from the European Commission and the UK Competition and Markets Authority.
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. Adobe CEO.
On September 15, 2022, the merger was announced and would have seen Adobe acquiring Figma for $ 20 Billion. There were concerns about Adobe's dominance in the design software market and the potential stifling of innovation led to regulatory opposition.
In a letter dated December 14th, Adobe rejected remedies suggested by the UK’s Competition and Markets Authority (CMA) to approve the merger following an in-depth antitrust probe. The authority wanted Adobe to make a significant divestment of assets, source code, and engineers to “restore the conditions of competition.”
“While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalise on our massive market opportunity and mission to change the world through personalised digital experiences.” Statement by Shantanu Narayen. Adobe CEO.
In another follow-up statement, Figma CEO Dylan Field stated, "It’s not the outcome we had hoped for. But 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."
Additional words and summary by John Waithaka
