18 December 2023
If you are covering the news that Adobe has terminated its proposed acquisition of Figma, please see the following comment from Ben Barringer, technology analyst at Quilter Cheviot:
“Adobe has today ended its proposed acquisition of Figma, having faced significant regulatory scrutiny in relation to the deal and with rulings from the EU Commission and the UK’s Competition and Markets Authority looming. These upcoming decisions had formed a heavy cloud of uncertainty over Adobe, and it has opted to clear the air by terminating the merger.
“The acquisition would have been an expensive move for Adobe, coming in at $20bn due to Figma’s profitability and sales metrics, but the termination will still come as a blow given Figma specialises in collaborative tools for creatives - an area where Adobe already has established but underperforming products. The acquisition could have placed Adobe in a competitive position, but the regulatory pressures appear to have been too much for it to warrant pushing ahead with the deal. Nonetheless, Adobe remains a robust business and the removal of these regulatory challenges alleviates the uncertainties it was due to face.”
