TLDR
- Semrush shares surged 69% in premarket trading after reports emerged of Adobe’s $1.9 billion acquisition offer at $12 per share.
- The proposed deal represents a 77.5% premium over Semrush’s Tuesday closing price of $6.76 and values the company at roughly $1.9 billion.
- Semrush provides search engine optimization and digital marketing software to major clients including TikTok and Amazon.
- The transaction could be finalized as soon as Wednesday, though negotiations could still fall apart before completion.
- Semrush went public on the New York Stock Exchange in 2021 and recently launched AI-powered tools for measuring performance across search engines and platforms like ChatGPT.
Semrush shares rocketed 69% in premarket trading Wednesday after the Wall Street Journal reported Adobe is nearing a $1.9 billion deal to acquire the company. The proposed transaction values the SEO platform at $12 per share.
The offer represents a 77.5% premium over Semrush’s Tuesday closing price of $6.76. The company’s market capitalization stood at just over $1 billion before the acquisition news broke.
Sources familiar with the matter told the Journal that a deal could be finalized as soon as Wednesday. However, they cautioned that talks could still collapse before reaching completion.
Semrush declined to comment on the reported acquisition. Reuters reached out to the company but received no immediate response.
The stock closed Tuesday at $6.76 per share. Adobe’s $12 per share offer represents a massive windfall for Semrush shareholders who have watched the stock struggle during the broader tech selloff this year.
From Public Markets to Acquisition Target
Semrush went public on the New York Stock Exchange in 2021. The company designs and develops software that helps businesses manage online advertising, social media research, and marketing campaigns.
The platform serves major enterprise customers. TikTok and Amazon are among the companies using Semrush’s tools for their digital marketing operations.
Semrush has positioned itself as an AI-forward company. The business recently unveiled a new tool that helps marketers measure their performance across traditional search engines and AI platforms.
The new capability tracks brand presence on ChatGPT, Gemini, and Perplexity. This addresses the shifting landscape as consumers increasingly turn to AI chatbots for information instead of traditional search engines.
Why Adobe Wants Semrush
The acquisition would be relatively small for Adobe, which holds a market value exceeding $135 billion. For Semrush, the deal offers a premium exit for shareholders.
Adobe’s stock has dropped more than 20% this year. Investors have been waiting to see concrete returns from the company’s AI investments.
The Photoshop maker raised its fiscal year outlook twice in recent months. Adobe said in September that its AI spending was beginning to pay off, with customers opting for premium offerings to access new capabilities.
Semrush shares have been beaten down during the tech stock selloff. The company’s market value of just over $1 billion made it an attractive acquisition target for larger software companies looking to expand their marketing technology offerings.
Adobe previously attempted a $20 billion acquisition of Figma in 2022. That deal fell apart over a year later after a U.K. regulator warned it would likely harm innovation.
The Semrush transaction represents a different approach. At $1.9 billion, the deal is much smaller and targets adjacent marketing technology rather than a direct competitor.
The $12 per share offer price gives Semrush shareholders a clear exit at a premium valuation. The company would gain access to Adobe’s resources and customer base while Adobe expands its marketing technology portfolio.
Adobe and Semrush have not confirmed the deal terms. The transaction remains subject to final negotiations and could still fall through before closing.
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