In response to heightened regulatory scrutiny in the UK and EU, Adobe and Figma jointly announced on Monday the termination of their merger agreement, wherein Adobe intended to acquire the Figma product design platform for $20 billion. The decision follows regulatory findings that prompted both companies to dissolve the deal. As a consequence, Adobe will fulfill a reverse termination fee of $1 billion in cash to Figma.

In a formal statement, Adobe's Chair and CEO, Shantanu Narayen, expressed mutual disagreement with the regulatory findings. However, both companies believe it is in their respective best interests to pursue independent paths. Narayen emphasized that, despite the dissolution of the merger, Adobe remains poised to leverage significant market opportunities and is committed to its mission of transforming the digital landscape through personalized experiences.