Adobe, the publisher of Photoshop, cancels its 20 billion merger project with Figma

The skepticism of regulators in Europe will have got the better of a new mega-merger project in the technology sector. The software publisher Adobe (Photoshop, Illustrator, etc.) is abandoning its merger project with Figma, the collaborative design platform. Announced in September 2022, the operation met opposition in particular from the British Competition and Markets Authority (CMA) and then from the European Union. This cancellation is based “on a joint assessment according to which it "There is 'no clear path' to receiving the necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority," the two companies explained. ". In other words, Adobe was not ready for the concessions demanded by the two authorities.

The CMA, which opened an in-depth investigation in June, said on Monday that Adobe would not propose remedial measures to resolve regulatory issues relating to the takeover. In August, the European Commission also opened an in-depth investigation into this takeover. “Adobe and Figma are two leading software providers for the digital creator community (....) we want to ensure that these users continue to have access to a wide range of creative tools from which to choose,” explained the vice -President of the Commission, Margrethe Vestager. In a preliminary opinion published on November 17, Brussels considered the acquisition “likely to restrict competition”. For its part, the CMA also feared for creative design where Figma “is an emerging competitive threat” in the face of Adobe’s leadership.

Founded in 2012, Figma publishes a collaborative work software platform which is a kind of “Google Docs of design”. It is experiencing very rapid growth in the world of application design and in businesses. According to Figma Europe, nearly 40% of CAC 40 companies use it. The amount offered by Adobe was much higher than 10 billion valuation of Figma during its last fundraising (200 million in June 2021). As a result of this cancellation, Adobe will have to pay a billion dollars to Figma, an amount which was planned in the contract in case the transaction does not take place. “Adobe and Figma strongly disagree with the recent findings of regulatory authorities but we believe it is in our respective best interests to proceed independently,” explained Shantanu Narayen, CEO of Adobe