Adobe CEO Shantanu Narayen speaks during an interview with CNBC at the New York Stock Exchange on February 20, 2024.
Brendan Mcdermid | Reuters
Adobe said Wednesday it had reached a deal to acquire the search engine marketing platform Semrush for $1.9 billion to boost its tools for marketers in the age of artificial intelligence.
Shares of Semrush shot up 74% for their best day ever, while Adobe fell 2%.
The design software company said it will pay $12 per share for Semrush in an all-cash transaction. The deal is expected to close in the first half of 2026.
Semrush, which offers search engine optimization tools to marketers, went public in 2021. Its largest customers include: Amazon and TikTok. Shares closed Tuesday at $6.76.
Adobe said the company provides the necessary search engine and marketing tools to help brands engage and grow customers, especially in the AI era.
“Brand visibility is being reimagined by generative AI, and brands that do not embrace this new opportunity risk losing relevance and revenue,” said Anil Chakravarthy, president of Adobe’s digital experience business, in a press release.
Adobe, which is widely known for its Photoshop tool, has implemented more AI into its technology stack over the years to capitalize on the fast-growing trend. That includes an artificial intelligence assistant for Reader and Acrobat.
Unlike its bigger tech peer, Adobe has struggled to win over some investors.
Shares of Adobe have lost more than a quarter of their value this year, while shares of Semrush are flat.
Software as a service (or SaaS) platforms have sold out across the board this year amid concerns that the industry will lose market share to artificial intelligence.
Adobe previously made a $20 billion offer to acquire a design software company Figma. That plan was scrapped in December 2023 as it faced regulatory hurdles.
Figma went public in July as activity in the IPO market picked up.
Semrush year-to-date stock chart.
