After kicking off a $20 billion purchase deal, Adobe and Figma are now going their separate ways. This deal met its end due to the pressures from the EU and the UK concerning the nature of the purchase deal. However, despite Adobe not pulling through with its proposed purchase of Figma, it’ll still pay the graphics design software firm a reverse termination fee.
According to the available reports, this fee is running into billions, as Adobe will pay $1 billion to Figma. This is not the way both Adobe and Figma hoped that this purchase deal would go, as they both kicked against the EU and UK’s verdict. However, they are putting all bad feelings aside and continuing their partnership with one another void of the purchase deal.
Yes, over the past few months, Adobe and Figma have been in a partnership making tools on both platforms more accessible to users. To boost better interoperability, Adobe offered to purchase Figma for a whopping $20 billion, but the EU and the UK were against this purchase. According to their findings, both the EU and the UK claim that Adobe exercises some sort of monopoly in the graphics design software industry.
These governmental agencies fear that Adobe’s purchase of Figma will harm the development that Figma can bring while existing on its own. With all the investigations on the ground, Adobe is in a tight spot concerning its purchase of Figma, hence leading to its pulling out. Even though some of the agencies investigating Adobe’s monopoly of the design market dropped their cases, this purchase deal is not going forward.
Figma’s CEO expresses his disappointment in the recent turn of events, saying “It’s not the outcome we hoped for.” Despite both firms in agreement, they find it hard to get regulators’ approval for the purchase deal to pull through. Regardless of this turn of events, both firms might continue their partnership to make their services available to designers around the world.