Adobe acquires Semrush for $1.9B

Adobe Inc., the maker of Photoshop, announced its acquisition of software platform Semrush for $1.9 billion. The deal involves Adobe Inc. paying $12 per share for Semrush, representing a premium of approximately 77.5% to Semrush's closing price on Tuesday. Following the announcement, Semrush shares surged by 55% to 75% in premarket trading. This acquisition is aimed at strengthening Adobe Inc.'s marketing tools and attracting brands with generative artificial intelligence products, as Adobe Inc. faces investor pressure to increase monetization of its AI features amid intense competition. Semrush specializes in developing AI software for search engine optimization, social media, and digital advertising. The acquisition, expected to close in the first half of next year, will enable Adobe Inc. to help marketers better understand consumer perception of their brands online, including through AI bots like ChatGPT and Google Gemini. Adobe Inc. has also been working with OpenAI to integrate ChatGPT control into its applications.