Adobe (ADBE) -) pulled the plug on its proposed $20 billion takeover of privately held design startup Figma following pushback from regulators in Europe and the U.K.
At last check Adobe shares were marked 2.3% higher near $598. In 2023 through the close of trading Friday, the San Jose, Calif., graphics-software specialist's shares were up 74%.
Adobe unveiled the deal in September of last year, saying it would pay cash and stock for Figma, the San Francisco platform design group used by companies such as Zoom Video and Coinbase.
Britain's Competition and Markets Authority said late last month that the deal would likely "harm innovation for software used by the vast majority of UK digital designers." The statement followed a probe launched this summer.
The European Commission, which is also looking into the deal, told Adobe earlier this month that the transaction might "reduce competition in the global markets for the supply of interactive product design software and of other creative design software."
Adobe said the deal, which originally included a $1 billion breakup fee for both sides, was terminated mutually, saying there was no "clear path" to approvals from either the U.K. or the European Union.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” Chief Executive Shantanu Narayen said in a statement.
“While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalize on our massive market opportunity and mission to change the world through personalized digital experiences.”
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