Adobe Ditches $20 Billion Figma Acquisition

On Monday, Adobe scrapped its plans to acquire design software company Figma for $20 billion, citing no clear path to regulatory approval. Regulators in the EU and UK expressed concerns that the deal would essentially give Adobe a monopoly in the design software sector, while US regulators were considering similar investigations. As a result of the deal falling through, Adobe will pay Figma a fee of $1 billion in cash.

According to The Information, Figma expects to finish 2023 with $600 million in ARR, up 40% from last year. Given the company has yet to take the necessary steps, an IPO would be at least a year away. The company is contemplating a secondary offering of employee shares; however, this would be at a lower valuation than its $20 billion acquisition price.

Figma, a Prime Unicorn Index component, was most recently valued at $8.43 billion following a $200 million Series E round in June 2021 at $21.30 PPPS. The company has raised a total of $334.64 million over six rounds.

Investors include Durable Capital Partners, Counterpoint Global, Index Ventures, Greylock Partners, Kleiner Perkins, Sequoia, Andreessen Horowitz, Founders Fund, and Coatue. The Figma deal would have meant significant returns in a period marked by few exit opportunities. Investors in the company will now likely have to wait longer for diminished returns.