"Adobe Inc. (NASDAQ:ADBE) is pushing deeper into data-driven marketing with a plan to acquire SEMrush Holdings, Inc. (NYSE:SEMR) for $1.9 billion in cash. The move is seen as bolstering its enterprise reach and competitive strength in search engine optimization and emerging generative engine optimization. By integrating Semrush's robust artificial intelligence-powered search technologies into the Adobe Experience Cloud, Adobe aims to give marketers sharper insights into keywords, competitors, and demand signals while expanding its influence in brand visibility solutions."
"JP Morgan analyst Mark R Murphy maintained an Overweight rating on Adobe with a price forecast of $520. Murphy said Adobe plans to acquire Semrush in an all-cash deal valued at about $1.9 billion, paying $12.00 per share. The analyst viewed Semrush as a strong and innovative leader in both search engine optimization and the emerging generative engine optimization market."
"However, he mentioned that Semrush recently struggled to sustain 20%+ revenue growth after setting aggressive expectations, putting pressure on valuation despite a solid technology foundation. Murphy argued that Adobe can provide Semrush with the enterprise scale the company could not fully unlock on its own. The analyst said Semrush historically focused on the midmarket and only recently began gaining traction with enterprise customers."
Adobe plans to acquire SEMrush for about $1.9 billion in an all-cash deal to add AI-powered search and SEO capabilities to Adobe Experience Cloud. The integration aims to provide marketers with improved insights into keywords, competitors, and demand signals while expanding Adobe's brand visibility solutions. JP Morgan analyst Mark R Murphy maintained an Overweight rating on Adobe and forecast a $520 price target, noting Semrush's leadership in SEO and generative engine optimization. Semrush has struggled to sustain over 20% revenue growth after aggressive expectations, and Adobe's enterprise scale, global sales reach, and distribution channels could accelerate Semrush's enterprise adoption.
Read at Benzinga
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