Adobe and Figma Mutually Agree to Terminate Merger Agreement
Portfolio Pulse from Benzinga Newsdesk
Adobe (NASDAQ:ADBE) and Figma have mutually agreed to terminate their merger agreement due to the lack of a clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority. The merger was originally announced on September 15, 2022, and would have involved a mix of cash and stock consideration.
December 18, 2023 | 1:01 pm
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Adobe's planned acquisition of Figma has been cancelled due to anticipated regulatory challenges in the EU and UK, potentially affecting Adobe's growth strategy.
The termination of the merger agreement between Adobe and Figma removes the potential benefits Adobe could have realized from Figma's innovative design platform. However, the cancellation also eliminates the uncertainty and potential costs associated with regulatory challenges. The short-term impact on Adobe's stock price could be neutral as the market digests the news and considers Adobe's future growth prospects without Figma.
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