Adobe to buy Semrush, sending marketing platform’s shares up 70%

Adobe mentioned Wednesday that it reached a deal to acquire search engine advertising platform Semrush for $1.9 billion to spice up its instruments for entrepreneurs within the age of artificial intelligence.

Semrush shares skyrocketed greater than 70%, whereas Adobe fell about 2%.

The design software program agency mentioned it can pay $12 a share for Semrush in an all-cash transaction. The deal is predicted to shut through the first half of 2026.

Semrush, which affords search engine marketing instruments to entrepreneurs, went public in 2021. Its greatest prospects embody Amazon and TikTok. Shares closed Tuesday at $6.76.

Adobe mentioned the corporate affords obligatory search engine and advertising instruments to assist manufacturers have interaction and develop prospects, particularly within the age of AI.

“Model visibility is being reshaped by generative AI, and types that do not embrace this new alternative threat dropping relevance and income,” mentioned president of Adobe’s digital expertise enterprise Anil Chakravarthy mentioned in a launch.

Adobe, which is extensively recognized for its Photoshop software, has carried out extra AI into its expertise stack over time to capitalize on the burgeoning pattern. That features an artificial intelligence assistant for Reader and Acrobat.

In contrast to its bigger tech peer, Adobe has had a tricky time successful over some traders.

Adobe’s inventory has shed greater than 1 / 4 of its worth this 12 months, whereas Semrush inventory is flat.

Software program as a service, or SaaS, platforms throughout the board have offered off this 12 months on fears that the sector could also be dropping share to synthetic intelligence.

Adobe beforehand made a $20 billion bid to purchase design software program firm Figma. That plan was scrapped in December 2023 because it confronted regulatory hurdles.

Figma went public in July as preliminary public providing market exercise picked up.