CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
ADBE terminated its intent to acquire Figma, citing that there is no clear path to receive regulatory approval from the European Commission and the U.K. Competition and Markets Authority (CMA). We’re by no means surprised by the decision as we thought the regulatory hurdles across the globe were too steep to overcome; we note that the termination includes a $1B fee that ADBE will pay. Still, this provides clarity on the subject matter with the deal being stuck in limbo for the last 15 months (valued at $20B half cash/stock). Despite hopes that the M&A landscape could be improving, with completed mega deals of Microsoft/Activision and Broadcom/VMware, we think regulators continue to scrutinize Tech deals, especially as we progress into a more AI-driven environment. Europe and the U.K. CMA have been among the most vocal to raise concerns about Tech deals, but so has the U.S. (hence, major tech companies focusing on partnerships instead) while geopolitical pressures could weigh on China approvals in some cases.