Given the latest turn of events, it is clear that Adobe Inc. is racing against time to devise a plan to support its $20 billion acquisition of Figma Inc., as the likelihood of the transaction getting blocked by European antitrust regulators seems more certain. Bloomberg Law reports that Adobe officials are urgently developing a proposal to mitigate regulators’ concerns.
The proposed deal, if successful, will stand as Adobe’s biggest acquisition in its history. However, the trade faces an impending veto from EU competition authorities, causing Adobe to speed up its remedy-planning process. The global software giant is reportedly under pressure to design robust actions that could favor the deal’s approval worldwide.
The initial offer by Adobe may include a set of strong commitments. One of them could be to not integrate Figma into Adobe’s Creative Cloud package. Given that the Creative Cloud is a bundle of Adobe’s various software products, keeping Figma independent would alleviate fears of significant changes in the marketplace post-acquisition. Moreover, considering that Adobe’s existing product, Adobe XD, is a direct competitor to Figma, the company might need to think about potentially divesting it to further address antitrust concerns.
Adobe executives and lawyers, along with their Figma counterparts, are said to be getting ready for heading to Brussels on December 8. Despite the sense of urgency and the confidential nature of these discussions, other details about the planned commitments or remedies remain less clear.
This story serves as a reminder that major corporate acquisitions are not simply about two willing parties agreeing to a deal. The regulatory landscape plays a significant role in such high-value transactions, and as demonstrated in this case, may necessitate rapid strategy adjustments to ensure that the deal can proceed.