Adobe announced on Wednesday that it’s set to acquire Semrush, a search engine optimization company, for approximately $1.9 billion in cash. This move aims to enhance Adobe’s marketing portfolio.
The company plans to offer $12 per share for Semrush, nearly double its closing price of $6.89 on Tuesday, just before news of the acquisition broke. Semrush had a market cap of around $1 billion at the close of trading on Tuesday.
By bringing Semrush into its fold, Adobe is betting on a growing trend: companies investing in optimizing their content and websites for better visibility through AI tools. As people increasingly turn to AI chatbots and browsers for tasks ranging from reading news to shopping or booking travel, Semrush’s role as an SEO player becomes even more crucial. This shift in consumer behavior is driving a surge in website traffic from generative AI tools.
Indeed, traffic to retail websites from generative AI chatbots jumped 1,200% as of October compared to the previous year, according to Adobe Analytics data.
Semrush has been focusing on what it calls “generative engine optimization.” They recently rolled out a tool designed to track and enhance website performance through both traditional SEO methods and AI engine optimization, including for platforms like ChatGPT, Claude, Copilot, Grok, and Perplexity.
“Brand visibility is evolving with generative AI, and brands that don’t adapt risk losing their relevance and revenue,” said Anil Chakravarthy, president of Adobe’s Digital Experience Business. “With Semrush, we’re enabling GEO for marketers as a new growth avenue alongside their SEO efforts, enhancing visibility, customer engagement, and conversions throughout the ecosystem.”
