On Wednesday, 19 November, a group breaking deal was signed between Adobe and Semrush, where the companies declared that Adobe will acquire Semrush at a valuation of 1.9 billion. Adobe is set to pay $12 for each share of the company, which will strengthen its AI integration.
After the announcement, the shares of Semrush jumped by 74%. Semrush is a major software developer that uses AI for search engine optimisation, digital marketing and social media. The acquisition is expected to close by the second half of next year and will significantly benefit Adobe. It will help marketers understand the market perspective of their products on AI chatbots.
E-market analyst, Grace Harmon, said that since Semrush does not have a big revenue engine, the prices are steep, which means that the price paid by Adobe was mainly due to the strategic value. Harmon also pointed out that the returns will be high for Adobe if it is able to turn the data of Semrush into AI products.
Tools offered by Adobe, including Acrobat, InDesign, and Illustrator, are commonly name in the design market by people from different backgrounds, including students and professionals. But as per reports, the company was undergoing pressure from investors over the use of AI products and increasing competition in the market, leading to a loss of 27% of their share value.
Analyst William Blair, in a report, said that the deal will make sure that Adobe continues its M&A engine, but its benefits and impact on its Creative Cloud business are not certain. Adobe has expanded its revenue in recent months and is also working with OpenAI to make some of its tools accessible via ChatGPT.
