Bonjour,
Victoria from Techpoint here.
Here's what I've got for you today:
- Adobe cancels a $20-billion bid to acquire Figma
- Pezesha's petition to liquidate MarketForce
- Tingo CEO charged for defrauding investors
Adobe cancels a $20-billion bid to acquire Figma
In September 2022, Adobe announced a definitive merger agreement to acquire Figma, a collaborative design platform, for approximately $20 billion in cash and stock.
What’s new? The merger, which was supposed to usher in a new era of collaborative creativity, has now been cancelled.
Why? The companies stated that they had terminated the acquisition plans due to regulatory pushback.
Well, given the size of the transaction and the fact that it eliminated one of Adobe's main competitors, the deal was bound to draw regulatory attention.
The US Department of Justice (DOJ) has been closely examining the deal for 2023. Besides, information about Adobe and Figma meeting with the DOJ to avoid legal action surfaced before the weekend.
Meanwhile, in Europe, the two companies were already facing significant challenges. In November 2023, the UK concluded that the proposed acquisition would "harm innovation," and thus, its competition authority would begin a thorough investigation.
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The move followed a similar decision in the European Union (EU) in August 2023.
The main points of contention were that, despite differences in features, Figma was the "clear market leader" in interactive product design tools and had a "constraining influence" over Adobe in digital asset creation tools.
Consequently, the perception was that Figma's acquisition by Adobe would hinder its ability to operate as an "effective competitor."
What now? Adobe will pay a $1 billion termination fee to Figma. It is what the agreement states will happen if the deal does not receive regulatory approval or closes within 18 months of the September 2022 deal announcement.
Although the 18-month period had not yet elapsed, and no regulatory body had published its findings, the companies terminated the agreement because they couldn’t resolve the issue, and the DOJ was considering legal action.
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Pezesha's petition to liquidate MarketForce
Kenyan fintech startup, Pezesha, has submitted a petition to liquidate a B2B eCommerce platform, MarketForce, due to “outstanding debts.”
Pezesha's liquidation petition states that MarketForce owes the company a significant amount and seeks to recover the unpaid debts through legal action.
The court invites MarketForce creditors or contributors to attend the hearing to support or oppose the order. The hearing on the liquidation order has been scheduled for March 11, 2024.
In 2021, the companies collaborated to improve customers' inventory and distribution. However, since then, MarketForce has been on the decline for over a year.
A series of events: In August 2022, MarketForce announced it reduced its workforce in Kenya, citing a reorganisation strategy. It also exited about five markets in Africa.
Besides, MarketForce CEO disclosed in May 2023 that the company had reduced the number of routes it covered from 700 to 400 to improve efficiency. It also halted its plans to expand into Ethiopia and Ghana via a partnership with Cellulant.
In August 2023, a year after announcing the close of its $40 million Series A to scale operations, the startup disclosed it was raising $1 million via WeFunder, an online platform enabling individuals to crowdfund startups. MarketForce said it was accepting as low as $1000.
In October 2023, MarketForce downscaled operations in Tanzania, Nigeria, and Rwanda to focus on Kenya and Uganda.What’s more, in 2022, MarketForce secured $40 million in funding and Pezesha secured $11 million in pre-series A funding to expand into more African countries.
Tingo CEO charged for defrauding investors
The US Securities and Exchange Commission has charged Tingo Group CEO Mmobuosi Odogwu Banye — also known as Dozy Mmuobosi — of defrauding investors.
How? The SEC says Banye misled investors at Tingo Group and its subsidiaries — Agri-Fintech Holdings and Tingo International Holdings — by inflating the financial performance of these three companies. He also misrepresented information about Tingo's operations and finances.
According to a SEC filing, the company also forged customer relationships while "fraudulently obtaining hundreds of millions of dollars or property through these schemes."
Seeking emergency relief, the Commission plans to stop the spread of misleading information and protect investor and corporate assets.
This news comes one month after the SEC temporarily halted trading in Tingo shares.
According to a statement, the suspension was due to the company's regular SEC filings and press releases containing false information.Tingo was recently the subject of a Hindenburg report that referred to the company as an "exceptionally obvious scam." Hindenburg's report cast doubt on numerous claims made by Mmobuosi and companies under the Tingo umbrella.
In case you missed it
- OPay and PalmPay enforce BVN and NIN for wallet opening
- Kenya to build 1,450 ICT hubs to improve its ICT ecosystem
What I'm reading and watching
- TikTok rolls out an enhanced app experience for tablets and foldables
- 7 Paradoxes That Will Change How You See Everything
- Are Humans Still Evolving?
Opportunities
- Lawyers Hub has opened applications for its 2023 Startup Law Accelerator program. Apply here.
- Do you live in Nigeria and work with a local or foreign company? Whether it's remotely, on-site, hybrid, full-time, part-time or as a freelancer, @TheIntelpoint is trying to understand the Nigerian workspace: how you work, and toxicity in the workspace among others. Please, fill out the questionnaire here.
- If you are a software engineer, creative designer, product manager, design researcher, or a techie looking for an internship role, please, check out this website.
Have a wonderful Tuesday!
Victoria Fakiya for Techpoint Africa.
