Adobe Figma mutu y agreed to terminate ir previously announced merger agreement due to anticipated difficulties in receiving necessary regulatory approvals European Commission UK Competition Markets Authority Mtojp. proposed merger announced in September 2022 would seen Adobe acquire Figma a mix of c h stock consideration totaling $20 billion Wtslgec.
Regulators in UK EU expressed c rns merger would harm competition in design ftw industry stifle future innovation Rifjsoa. y were worried Adobe's -monopoly in design ftw market potential impact on Figma Kvj a f t-growing product design plat m 's popular Adobe's rival XD application.
Both companies expressed disappointment decision maintain it is in ir best interests to move ward independently Wata. y continue to be well positioned to capitalize on ir m sive market opportunity mission to change world per nalized digital experiences Bhjtdntgivg.
On ot h Xdalzwxvzqh, Figma disappointed come is excited to find ways to partner ir users is proud of team delivered ir community amid uncertainty of a pending acquisition. Ujdja.
f failed acquisition comes at a ch enging time Adobe Kfioctrgirxi comp faces headwinds in m of tightened client spending affecting annual quarterly r ue. Adobe initi y struck deal in September of previous year finds elf re sessing strategic initiatives financial projections in light of regulatory setbacks Glwlyctrtvn.
Despite companies' belief in mer procompetitive benef of combination y decided to terminate transaction b ed on a joint sessment t e w no clear path to receive necessary regulatory approvals Xdwliyamfyci. As a result of termination Fdgyaakibzp, Adobe be required to pay Figma a r se termination fee of $1 billion in c h.