AI avatar startup Synthesia held talks with software giant Adobe to be acquired for about $3bn, according to the Information, as a wave of AI M&A activity washes over the European tech sector.
Startups in the region are increasingly being targeted for acquisitions as corporate and scaleups race to develop AI tech and commercialise tools.
Adobe and Synthesia did not reach an agreement, reported the Information. The London-based AI startup also held talks with Meta about a possible sale earlier in the year, the publication added, which didn’t end up going through.
Synthesia rejected the Adobe offer, the Times reported, adding that founder and CEO Victor Riparbelli is understood to want to continue to build a standalone business.
The company, which is building video generation software that creates avatars of people for internal and external company communications, has become one of the UK’s tech darlings in recent years.
Founded in 2017, the company raised a $180m Series D round in January at a $2.1bn valuation, with Adobe investing an undisclosed amount months later. Synthesia reported hitting $100m in annual recurring revenue (ARR) in April, a figure which has since risen above $150m, The Information reported.
M&A activity for European AI startups has picked up pace in 2025. Sifted data shows 100 acquisition deals involving an AI-native startup have occurred so far this year, already ahead of the 85 that happened in 2024.
Synthesia declined to comment.
