Adobe (NASDAQ:ADBE) and Figma have jointly decided to terminate their proposed merger, according to a press release.
The deal was initially announced on September 15, 2022. Adobe intended to acquire Figma with a combination of cash and stock, and the deal will not proceed, two companies said.
Adobe shares rose 2% on the news.
The mutual agreement to terminate the deal suggests a strategic reevaluation or changes in circumstances that led both parties to reassess the viability or desirability of the merger. The merger did not receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.
“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” said Shantanu Narayen, chair and CEO, Adobe.
“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.”