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Adobe has terminated its proposed $20bn merger with product design software company Figma, following competition probes from EU and UK regulators.
The UK’s Competition and Markets Authority said that combining the two companies would threaten competition in product design, image editing and illustration. Adobe refused to offer solutions that would satisfy the CMA’s concerns last week, arguing that a divestment would be “wholly disproportionate”.
On Monday, hours after the CMA published Adobe’s response to its request for remedies, the two companies issued a joint statement terminating the merger.
Adobe will pay Figma $1bn in a termination fee, under the terms of the merger agreement.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” said Shantanu Narayen, chair and chief executive of Adobe.
This is a developing story