Adobe has announced the abandonment of its $20 billion cash-and-stock deal for the cloud-based designer platform Figma.
The decision was attributed to the absence of a "clear path" for approvals from antitrust regulators in the European Union (EU) and the UK.
The decision was attributed to the absence of a "clear path" for approvals from antitrust regulators in the European Union (EU) and the UK, as reported by
The deal, initially announced in September of the previous year, faced rigorous scrutiny from regulators concerned about Big Tech acquisitions potentially enhancing the market power of dominant companies or involving startups viewed as emerging rivals.
Adobe's termination of the deal resulted in a termination fee of $1 billion to be paid to Figma. Adobe's shares rose approximately 1.7% premarket on Monday.
The UK's competition watchdog confirmed on Monday that Adobe had not proposed any remedies to address regulatory concerns regarding the acquisition. Adobe had argued that it did not compete meaningfully with Figma.
In November, Adobe asserted that its only product relevant to the antitrust question was the Adobe XD design tool, which had operated at a loss of $25 million as a standalone app over the past three years and employed only five full-time staff members.