Big Law

Department of Justice Requests More Data from Adobe Regarding Figma Acquisition

Adobe Inc. and Figma Inc. have received a second request for information from the US Department of Justice on Adobe’s proposed $20 billion acquisition of its startup rival, signaling stepped-up antitrust scrutiny of the purchase.

The deal, which would be one of the largest takeovers of a private software maker ever, was announced Sept. 15 with a targeted completion in 2023. Adobe, the top maker of creative software for design professionals, is looking to expand its web-based offerings to make inroads with nonprofessional customers and small businesses. That market has gravitated in recent years to web-native companies such as San Francisco-based Figma, Canva Inc. and Lightricks Ltd.

The Justice Department on Monday asked Adobe and Figma to provide additional information on the deal, known as a second request, the companies said in a regulatory filing. The action means regulatory approval for the deal can’t come until at least 30 days after Adobe and Figma fulfill the request, the DOJ ends its review, or the parties agree to an extension, the companies said. Bloomberg earlier this month reported that the Justice Department had initiated an antitrust investigation of the proposed acquisition, according to people familiar with the issue.

Read the source article at finance.yahoo.com

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