Adobe to buy digital marketing platform Semrush for $1.9 billion

"Adobe will acquire software platform Semrush for $1.9 billion, the companies said on Wednesday, as the Photoshop maker looks to strengthen its marketing tools and attract brands with generative artificial intelligence products. The company will pay $12 per share for Semrush, representing a premium of around 77.5% to its stock's last closing price. Semrush shares jumped 75% to $11.83 in premarket trading."

"Semrush designs and develops AI software that helps companies with search engine optimization, social media, and digital advertising. The acquisition, expected to close in the first half of next year, would allow Adobe to help marketers better understand how their brands are viewed by online consumers through searches on websites and generative AI bots such as OpenAI's ChatGPT and Google's Gemini."

"Adobe's tools, which also include InDesign, Acrobat, and Illustrator, have become household names in design software, widely used by enterprises, students, and creative professionals to edit, create websites, brochures, and graphics. The company also provides "Adobe Experience Cloud" to help companies with data and analytics. But investor pressure to ramp up monetization of AI products and features amid intensifying competition in the digital design industry has weighed on its shares, which have fallen more than 27% so far this year."

Adobe will acquire Semrush for $1.9 billion, paying $12 per share, a roughly 77.5% premium to the stock's last close, and Semrush shares surged in premarket trading. Semrush builds AI software for search engine optimization, social media, and digital advertising. The deal, expected to close in the first half of next year, aims to help marketers understand brand perception across website searches and generative AI bots like ChatGPT and Gemini. Adobe maintains widely used creative tools such as Photoshop, InDesign, Acrobat, and Illustrator and operates Adobe Experience Cloud for data and analytics. Investor pressure to monetize AI features and rising competition have weighed on Adobe's share price this year.

Read at Fast Company