Adobe to buy Semrush for $1.9 billion, sending marketing platform's shares up 70%

Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor at the New York Stock Exchange on Feb. 20, 2024.Brendan Mcdermid | ReutersAdobe said Wednesday that it reached a deal to acquire search engine marketing platform Semrush for $1.9 billion to boost its tools for marketers in the age of artificial intelligence.Semrush shares skyrocketed more than 70%, while Adobe fell about 2%.The design software firm said it will pay $12 a share for Semrush in an all-cash transaction. The deal is expected to close during the first half of 2026.Semrush, which offers search engine optimization tools to marketers, went public in 2021. Its biggest customers include Amazon and TikTok. Shares closed Tuesday at $6.76.Adobe said the company offers necessary search engine and marketing tools to help brands engage and grow customers, especially in the age of AI. "Brand visibility is being reshaped by generative AI, and brands that don't embrace this new opportunity risk losing relevance and revenue," said president of Adobe's digital experience business Anil Chakravarthy said in a release.Adobe, which is widely known for its Photoshop tool, has implemented more AI into its technology stack over the years to capitalize on the burgeoning trend. That includes an artificial intelligence assistant for Reader and Acrobat.Unlike its larger tech peer, Adobe has had a tough time winning over some investors.Adobe's stock has shed more than a quarter of its value this year, while Semrush stock is flat. Software as a service, or SaaS, platforms across the board have sold off this year on fears that the sector may be losing share to artificial intelligence. Adobe previously made a $20 billion bid to buy design software company Figma. That plan was scrapped in December 2023 as it faced regulatory hurdles. Figma went public in July as initial public offering market activity picked up.