By Dean Seal

Adobe has called off its planned $20 billion acquisition of the collaboration-software company Figma, weeks after a U.K. regulator warned that the deal would likely harm innovation.

Adobe and Figma said Monday morning that they have mutually agreed to terminate the cash-and-stock transaction because they couldn't see a clear path to receiving regulatory approval from the European Commission and the UK Competition and Markets Authority.

The U.K. agency late last month said that, following a detailed investigation, it provisionally found the acquisition would eliminate competition between two main companies in product-design software, reduce innovation and remove Figma as a threat to Adobe's flagship Photoshop and Illustrator products.

Chief Executive Shantanu Narayen said Monday that the companies strongly disagree with the findings but "believe it is in our respective best interests to move forward independently."

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

December 18, 2023 08:37 ET (13:37 GMT)

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