Adobe (ADBE) Stock: Photoshop Maker Pursues $1.9 Billion Semrush Acquisition

TLDR

• Adobe is nearing a $1.9 billion deal to acquire Semrush, a software platform specializing in search engine optimization and digital marketing tools.
• The deal values Semrush at $12 per share, representing a 77.5% premium over its Tuesday closing price of $6.76.
• Semrush shares jumped 69% in premarket trading following the news, while the company had a market value of just over $1 billion before the announcement.
• The acquisition could be finalized as soon as Wednesday, though talks could still fall apart before completion.
• Semrush serves major enterprise clients including TikTok and Amazon, offering tools for online advertising, social media research, and AI-powered search optimization.

Adobe is close to finalizing a $1.9 billion acquisition of Semrush, according to a Wall Street Journal report citing sources familiar with the matter. The deal would bring the search engine optimization platform under Adobe’s umbrella as the company works to expand its AI capabilities.

The proposed transaction values Semrush at $12 per share. That price represents a 77.5% premium over Semrush’s Tuesday closing price of $6.76.

Semrush shares surged 69% in premarket trading after the news broke Wednesday morning. The stock reaction reflects investor confidence in the potential deal.

Semrush Holdings, Inc., SEMR

The acquisition could close as soon as Wednesday. However, sources cautioned that negotiations could still collapse before finalization.

Semrush went public on the New York Stock Exchange in 2021. The company designs software that helps businesses manage online advertising, social media research, and marketing campaigns.

Major companies like TikTok and Amazon use Semrush’s platform. The software has become particularly relevant as businesses adapt to AI-powered search engines.

What Semrush Brings to Adobe

Semrush recently launched a tool that helps marketers measure performance across traditional search engines and AI platforms like ChatGPT, Gemini, and Perplexity. This capability addresses the changing landscape of how consumers find information online.

The $1.9 billion price tag is relatively modest for Adobe. The company currently holds a market value exceeding $135 billion.

Adobe’s stock has dropped more than 20% this year. Investors have been waiting to see concrete returns from the company’s AI investments.

The company raised its fiscal year outlook twice in recent months. Adobe said in September that its AI spending was beginning to generate results, with customers choosing premium offerings to access new capabilities.

Previous Acquisition Attempts

Adobe tried to acquire collaboration software company Figma for approximately $20 billion in 2022. That deal would have been Adobe’s largest acquisition ever.

The Figma transaction fell apart over a year later. A U.K. regulator warned the deal would likely harm innovation in the design software market.

The Semrush acquisition represents a different strategy. Rather than buying a direct competitor, Adobe is expanding into adjacent marketing technology.

Semrush shares have suffered during the broader tech stock selloff this year. The company has emphasized its AI adoption, particularly in search optimization.

Adobe and Semrush declined to comment on the reported deal. Reuters reached out to both companies but received no immediate response.

The deal price of $12 per share values Semrush at roughly $1.9 billion total. The company’s market capitalization stood at just over $1 billion before the acquisition news.

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