Adobe Inc. has decided to acquire marketing software company Serush in a $1.9 billion deal, marking its first takeover since its 2022 $20 billion acquisition attempt of Figma failed. The deal values Semrush at $12 per share and is expected to close during the first half of 2026.
Adobe said it will settle the deal in cash, confirming earlier reports by the Wall Street Journal. The deal is considered a small bite for Adobe, which is currently valued at over $135 billion.
However, the company’s CEO, Shantanu Narayen, stated at the end of October that Adobe is undervalued despite the increasing adoption of its AI product and strong growth drivers. Narayen believes that Adobe’s issues stem from the market’s current fixation on AI infrastructure and semiconductors, failing to give the software layer its due importance.
Meanwhile, the acquisition of Semrush allows Adobe to help marketers gain a better understanding of how their products (or brands) are presented to online consumers. And not just through traditional search engines, but also new large language models (LLMs).
The transaction has already been approved by the Board of Directors of Adobe and Semrush. However, the deal is still subject to other customary closing requirements, including the receipt of necessary regulatory approvals and approval by Semrush’s shareholders.
Wachtell, Lipton, Rozen & Katz is Adobe’s legal advisor regarding the transaction, while Centerview Partners LLC is the exclusive financial advisor to Semrush. David Polk &Wardell is the legal advisor to Semrush regarding the transaction.
Chakravarthy describes it as natural growth
The President of Adobe Digital Experience Business, Anil Chakravarthy, says this is a natural way for his company to grow in a space that remains important to its customers. Chakravarthty believes it is every chief marketer’s dream to appear in AI searches and on other platforms, such as ChatGPT.
Semrush joins other Adobe products, such as Adobe Experience Manager (AEM), Adobe Analytics, and the new Adobe Brand Concierge, to help solve major pain points for brands that embrace agentic AI.
Together, Semrush and Adobe are expected to provide marketers with a holistic understanding of how their brands appear in traditional searches, owned channels, and LLMs. Meanwhile, Semrush drove 33% YoY Annual Recurrent Revenue growth in its enterprise customer segment in the most recent quarter.
“Brand visibility is being reshaped by generative AI, and brands that don’t embrace this new opportunity risk losing relevance and revenue.”
–Anil Chakravarthy, President of Adobe Digital Experience Business
Chakravarthy also stated that the partnership aims to unlock generative engine optimization (GEO) for marketers as a new channel for growth, alongside their existing search engine optimization (SEO) efforts. The Adobe executive says that this will enhance visibility, customer engagement, and conversions across the entire ecosystem.
Wagner claims this combination provides more marketing insights
The CEO of Semrush, Bill Wagner, said the collaboration between Adobe and Semrush provides marketers with more insights and capabilities to boost their discoverability across today’s ever-expanding digital landscape. Semrush’s solutions specifically address the growing need for marketers to be discoverable in AI searches.
The marketing software provides solutions to deliver brand visibility and relevance as marketers increasingly turn to their SEO teams to drive their generative AI marketing strategies. Generative AI platforms are reportedly already driving changes in consumer behavior.
Meanwhile, Adobe helps marketers create personalized customer experiences at scale. New data from Adobe Analytics also shows that traffic from generative AI sources to U.S. retail sites surged 1,200% YoY in October.
On the other hand, Wagner emphasized the impact of new AI search products, noting that his company’s AI search products, including its AI Optimization products and AI Toolkit, launched this year, have added nearly $10 million in ARR, more than doubling from Q2 to Q3.
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