Adobe to buy Semrush for $1.9 billion, sending marketing platform's shares up 70%

In a significant strategic decision, Adobe announced on Wednesday its intention to acquire the search engine marketing platform Semrush for a staggering $1.9 billion. This acquisition aims to enhance Adobe's marketing tools, particularly in light of the rising influence of artificial intelligence. Following the news, Semrush's stock price surged by more than 70%, while Adobe's shares experienced a slight decline of about 2%. The all-cash deal will see Adobe paying $12 per share for Semrush, with the transaction anticipated to finalize in the first half of 2026. Semrush, which specializes in search engine optimization tools, made its public debut in 2021 and counts major companies like Amazon and TikTok among its clientele. Prior to the announcement, Semrush's shares closed at $6.76. Adobe emphasized the importance of search engine and marketing tools in helping brands connect with and expand their customer base, especially in an era driven by AI advancements. Anil Chakravarthy, president of Adobe's digital experience division, highlighted that generative AI is redefining brand visibility, warning that companies failing to adapt risk losing their relevance and revenue. Known for its flagship product Photoshop, Adobe has increasingly integrated AI into its offerings, which now include AI assistants for products like Reader and Acrobat. However, the company has faced challenges in gaining investor confidence, with its stock declining by over 25% this year, contrasting with Semrush's stable performance. The software-as-a-service (SaaS) sector has seen a sell-off amid concerns about competition from AI technologies. In a previous venture, Adobe attempted to acquire design software firm Figma for $20 billion, but that plan was abandoned in December 2023 due to regulatory complications. Figma eventually went public in July, coinciding with a resurgence in IPO activity.