Adobe (ADBE) announced on Wednesday that it intends to acquire software company Semrush (SEMR) in an all-cash deal worth $1.9B.
The deal values Semrush at $12 per share, a near 70% premium to yesterday’s closing price of $6.76 per share.
Semrush has expertise in areas such as generative artificial intelligence optimization and search engine optimization and marketing, helping businesses with advertising, online reach and various other forms of brand visibility. And with consumers increasingly turning towards apps such as ChatGPT, Gemini, and other generative AI chatbots, brands are increasingly relying on companies such as Semrush to put them in front of shoppers.
Semrush counts firms such as Amazon, JPMorgan Chase and TikTok among its customers.
“Brand visibility is being reshaped by generative AI, and brands that don’t embrace this new opportunity risk losing relevance and revenue,” said Anil Chakravarthy, president of Adobe’s Digital Experience Business, in a statement. “With Semrush, we’re unlocking GEO for marketers as a new growth channel alongside their SEO, driving more visibility, customer engagement and conversions across the ecosystem.”
“Adobe is an industry leader in helping marketers create personalized customer experiences at scale,” said Semrush CEO Bill Wagner. “With the advent of LLMs and AI-driven search, brands need to understand where and how their customers are engaging in these new channels. This combination provides marketers more insights and capabilities to increase their discoverability across today’s evolving digital landscape.”
Adobe already helps brands with products such as AEM, Adobe Analytics and the newly introduced Adobe Brand Concierge.
The transaction has been approved by both company’s board of directors and is expected to close in the first-half of 2026, subject to required regulatory approvals and other customary closing conditions. Semrush’s founders and other stockholders, which account for more than 75% of the voting power of Semrush, have already agreed to vote in favor of the deal.
Wachtell, Lipton, Rosen & Katz served as legal counsel to Adobe, while Centerview Partners LLC served as financial advisor to Semrush on the deal. Davis Polk & Wardwell served as legal advisor to Semrush.