Adobe CEO Shantanu Narayan speaks to CNBC on the floor of the New York Stock Exchange on February 20, 2024.
Brendan McDiarmid | Reuters
adobe announced Wednesday that it has reached an agreement to acquire the search engine marketing platform. sem rush Invested $1.9 billion to enhance tools for marketers in the age of artificial intelligence.
Semlash stock soared more than 74%, while Adobe fell about 2%.
The design software company announced it will pay Semlash $12 per share in an all-cash transaction. The deal is expected to close in the first half of 2026.
Semrush, which provides search engine optimization tools to marketers, went public in 2021. Its largest customers include: Amazon And TikTok. The stock’s closing price on Tuesday was $6.76.
Adobe said it provides the search engines and marketing tools needed to help brands engage with customers and grow, especially in the age of AI.
“Brand perception is being reshaped by generative AI, and brands that don’t take advantage of this new opportunity risk losing relevance and revenue,” Anil Chakravarthy, president of Adobe’s Digital Experiences business, said in a release.
Adobe, widely known for its Photoshop tools, has been implementing more AI into its technology stack over the years to take advantage of burgeoning trends. This includes artificial intelligence assistants for Reader and Acrobat.
Unlike its big technology peers, Adobe has struggled to win over some investors.
Adobe’s stock has lost more than a quarter of its value this year, while Semlash’s stock has remained flat.
Software-as-a-service (SaaS) platforms were sold across the board this year amid concerns that the sector was losing market share to artificial intelligence.
Adobe previously made a $20 billion bid to acquire the design software company figma. The plan was scrapped in December 2023 after facing regulatory hurdles.
Figma went public in July amid increased activity in the initial public offering market.
Semrush stock price chart from the beginning of the year to the present.
