Adobe to Acquire Semrush, Shares Soar 74%

Adobe (ADBE) announced Wednesday its intent to acquire Semrush (SEMR), a prominent search engine marketing platform, for $1.9 billion in an all-cash transaction. The move signals Adobe’s strategic push to bolster its marketing tools amidst the escalating influence of artificial intelligence.

The market reacted sharply to the news, with Semrush shares surging 74% to record their best trading day in history. Conversely, Adobe’s stock experienced a moderate dip of 2%.

Under the terms of the agreement, Adobe will pay $12 per share for Semrush, a premium reflecting the latter’s strategic value in the evolving digital marketing landscape. The acquisition is anticipated to be finalized during the first half of 2026, subject to customary regulatory approvals.

Semrush, which went public in 2021, provides a suite of search engine optimization (SEO) and marketing tools to businesses. Its client roster includes major players such as Amazon (AMZN) and TikTok, highlighting its significance in the digital ecosystem. Prior to the acquisition announcement, Semrush shares closed Tuesday at $6.76.

Adobe emphasized that Semrush’s capabilities align seamlessly with its vision of empowering brands to engage and expand their customer base effectively, particularly in the AI-driven era.

“Brand visibility is being reshaped by generative AI, and brands that don’t embrace this new opportunity risk losing relevance and revenue,” stated Anil Chakravarthy, president of Adobe’s digital experience business, in a press release. This statement underscores the perceived urgency for marketing professionals to adapt to the changing technological landscape.

Adobe, renowned for its flagship software like Photoshop, has increasingly integrated AI functionalities across its product portfolio to capitalize on emerging trends. This includes the recent introduction of an AI assistant for Reader and Acrobat, designed to streamline user workflows.

Despite its pioneering efforts in digital creativity and marketing solutions, Adobe has faced challenges in maintaining investor confidence, diverging from the trajectory of certain tech peers. Year-to-date, Adobe’s stock has declined by over 25%, contrasting with Semrush’s relatively stable performance.

Across the board, software-as-a-service (SaaS) platforms have witnessed a sell-off this year, fueled by concerns that the sector is losing ground to the rapid advancements in AI. This trend reflects investor apprehension regarding the potential disruption of established business models.

This acquisition follows Adobe’s previous attempt to acquire design software firm Figma for $20 billion, a deal that was ultimately abandoned in December 2023 due to regulatory obstacles. The collapse of the Figma deal underscores the increasing scrutiny that tech mergers face from antitrust authorities.

Figma subsequently proceeded with its initial public offering (IPO) in July, joining the renewed wave of activity in the IPO market.