Adobe’s $1.9 Billion Purchase of
Semrush
Triggers 75% Jump in Target’s Shares Before Market Opens
Adobe Inc. (NASDAQ:ADBE) revealed on Wednesday that it has reached an agreement to buy
Semrush Holdings Inc.
(NYSE:SEMR) through an all-cash transaction worth $1.9 billion,
causing Semrush’s share price to soar by 75%
to $10.66 per share. The deal, which puts Semrush’s value at $12 per share—a 70% premium over its Tuesday closing price of $6.76—
represents Adobe’s largest acquisition
since it walked away from the $20 billion Figma purchase in 2022. Semrush, a platform focused on digital marketing, SEO, AI-powered analytics, and brand visibility,
will strengthen Adobe’s Digital Experience segment
, which already features offerings such as
Adobe
Analytics and AEM.
The acquisition,
anticipated to be finalized in the first half of 2026
, still needs regulatory clearance.
Semrush’s leadership and shareholders
controlling more than 75% of voting rights have already expressed their approval. Adobe’s President, Anil Chakravarthy,
highlighted the strategic alignment
, noting that generative AI is transforming brand visibility and that Semrush’s expertise in “AI-generated search” will create new opportunities for Adobe’s marketing clients.
Semrush CEO Bill Wagner also remarked
that the merger fits the changing digital environment, where brands must keep pace with AI-driven engagement platforms like ChatGPT and Gemini.
Adobe’s shares, which have fallen 24.9%
this year as investors worry about AI’s effects on its main creative products, showed little change in pre-market trading after the news.
The company has been under pressure
to speed up the monetization of its AI features, including recent collaborations with OpenAI’s ChatGPT. By acquiring Semrush, Adobe is expanding further into AI-powered marketing analytics,
an area that is rapidly growing
as companies look to improve their visibility in AI-driven search results.
Experts point out that Adobe’s current valuation is lower than many of its competitors.
A discounted cash flow evaluation
puts Adobe’s true value at $580.34 per share, which is 42.9% below its present market price. At the same time, its price-to-earnings ratio of 19.9x
trails the software sector average
of 31.2x.
The Semrush acquisition could boost investor trust
by showing Adobe’s commitment to innovation in the AI space, though the company’s recent difficulties in meeting growth targets remain a concern.
This acquisition also mirrors a wider movement in technology, where AI-powered solutions are transforming digital marketing.
Semrush’s roster of clients features prominent brands
such as Amazon, JPMorgan Chase, and TikTok, highlighting the need for platforms that assist brands in adapting to AI’s influence on consumer habits. As Adobe incorporates Semrush’s technology,
the merged company plans to offer
marketers insights into new channels like AI-based search engines and chatbots.
