Adobe to Buy Semrush for $1.9 Billion

Software giant Adobe has announced an agreement to buy Boston-based brand visibility platform Semrush Holdings, Inc. for around $1.9bn in cash, adding SEO and GEO expertise to help clients enhance their brand visibility and expand audience reach.

Semrush has three US offices and eight across Europe, and in addition to GEO (Generative Engine Optimisation) and SEO expertise, provides advertising content, social media and competitive research campaigns from one platform / interface, as well as cross-channel measurement and optimization of digital ad campaigns. The company, which recently reported 15% revenue growth to $112.1m in the third quarter, is an investor in researcher MFour, and the owner of competitive intelligence automation specialist Kompyte.

Originally known for its graphics and document display software, Adobe now offers solutions spanning content supply chain, customer engagement and brand visibility. Its digital experience division accounts for around a quarter of its total revenue. In explaining the decision to acquire Semrush, the company places strong emphasis on its development of GEO solutions, seen as crucial with the rise of AI-based search - this will dovetail with existing Adobe products such as AEM, Adobe Analytics and the newly introduced Brand Concierge.

The deal is for $12 a share, a huge premium on Semrush's Tuesday closing price of $6.89. both companies' Boards have approved the buy, which should close in H1 2026 if regulatory approvals go through and other closing conditions are met, including the approval of Semrush's stockholders, from 75% of whom Adobe says it has received commitments to vote in favor.

Anil Chakravarthy, President of Adobe's Digital Experience Business, comments: 'Brand visibility is being reshaped by generative AI, and brands that don't embrace this new opportunity risk losing relevance and revenue. 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.'

Semrush CEO Bill Wagner (pictured) adds: 'Adobe is an industry leader in helping marketers create personalized customer experiences at scale. 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.'

The firms are online at www.adobe.com and www.semrush.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.