Adobe calls off $20 billion deal for Figma amid pushback from Europe over doable antitrust points

Adobe‘s planned $20 billion acquisition of online design company Figma is being called off due to pushback in Europe over antitrust concerns, the companies said Monday.

The companies announced the cash-and-stock deal in September 2022, seeking a path with Figma’s web-based, multi-player capabilities to speed up the supply of Adobe’s inventive cloud applied sciences on the net.

“Although both companies continue to believe in the merits and procompetitive benefits of the combination, Adobe and Figma mutually agreed to terminate the transaction based on a joint assessment that there is no clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority,” Adobe and Figma stated in a ready assertion on Monday.

Last month the Markets Authority stated that an early evaluation of a possible tie-up between the 2 corporations urged a “substantial lessening of competition” within the world marketplace for all-in-one product design software program for professionals, in addition to enhancing software program.

Figma, based in 2012, permits those that design interactive cellular and internet purposes to collaborate by multi-player workflows, subtle design techniques and a developer ecosystem.

Adobe, based mostly in San Jose, California, sells software program for creating, publishing and selling content material, and managing paperwork.

David Wadhwani, president, Digital Media Business, at Adobe, stated in assertion that the software program firm will nonetheless search for methods to companion with Figma sooner or later.

The corporations stated that they’ve signed a termination settlement that resolves all excellent issues from the transaction. Adobe Inc. can pay Figma a termination charge of $1 billion, which was beforehand agreed to.

Shares of Adobe rose 2% earlier than the market open.