In this article: By Zaheer Kachwala (Reuters) – Adobe announced on Wednesday that it will acquire the software platform Semrush for $1. 9 billion, aiming to enhance its marketing tools and appeal to brands through generative artificial intelligence products. Adobe will pay $12 per share in cash for Semrush, which represents a premium of approximately 77. 5% over Semrush's last closing stock price. Following the announcement, Semrush shares rose 74% to $11. 79. Semrush develops AI-driven software that assists companies with search engine optimization, social media management, and digital advertising. The acquisition, expected to finalize in the first half of next year, would enable Adobe to provide marketers with better insights into how their brands are perceived by online consumers via website searches and generative AI bots such as ChatGPT and Gemini. “The price is steep since Semrush isn’t generating substantial revenue independently, so Adobe is likely paying for strategic value.

The potential payoff could be significant if Adobe can efficiently transform Semrush’s data into profitable AI products, ” said Emarketer analyst Grace Harmon. Adobe’s suite of tools, including InDesign, Acrobat, and Illustrator, is widely recognized and used by enterprises, students, and creative professionals for designing websites, brochures, and graphics. However, investor pressure to increase monetization of AI capabilities amid growing competition in the digital design sector has negatively impacted its shares, which have dropped more than 27% so far this year. “While we view Adobe’s renewal of its M&A activity positively given its historical success, this deal may not fully address concerns around the company’s creative cloud business, ” William Blair analysts commented in a note. In September, Adobe raised its annual revenue and profit forecasts, driven by strong demand for its design software. A month later, the company revealed it was collaborating with OpenAI to allow users to control one of its applications directly via ChatGPT. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar) Recommended stories