Adobe and Figma have jointly decided to terminate their previously announced merger agreement. The initial agreement, made on September 15, 2022, had proposed that Adobe would acquire Figma for $20 billion.

The decision comes in light of the conclusion that receiving the necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority is unlikely, the companies said in a statement.

As part of the termination, the companies have signed an agreement resolving all outstanding matters related to the transaction. This includes Adobe paying Figma the previously agreed-upon termination fee.

Legal firms Wachtell, Lipton, Rosen & Katz; Skadden, Arps, Slate, Meagher & Flom; and Freshfields Bruckhaus Deringer are serving as legal advisors to Adobe.

Fenwick & West; Slaughter and May; and Cleary Gottlieb Steen & Hamilton are advising Figma.

[Image courtesy: Figma]