Adobe and Figma drop $20 billion deal, citing regulatory hurdles

Adobe and Figma have terminated their $20 billion merger agreement, the companies announced on Monday, citing regulatory hurdles that the two companies could not overcome.

Why it matters: The agreement to combine the two design software giants shows that the antitrust regime in both the U.S. and abroad continues to loom heavy over corporate acquisitions.

Flashback: The California companies announced the deal in September 2022 as a mix of cash and stock. Publicly traded Adobe agreed to buy privately held Figma. Regulatory scrutiny surrounded the agreement from the start.

What they're saying: "Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently," Adobe CEO Shantanu Narayen said in a statement on Monday.

• "It's not the outcome we had hoped for," Figma CEO Dylan Field said in a separate statement, "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."
• The companies said that there is no clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.

Go deeper:

• Figma adds more AI smarts as Adobe deal remains in limbo
• Adobe defends its $20 billion deal for Figma