Adobe nearing $1.9 billion deal to buy Semrush, WSJ reports

(Bloomberg/Brody Ford) — Adobe Inc. is nearing a deal to buy the marketing software company Semrush Holdings Inc. for $1.9 billion, the Wall Street Journal reported, a takeover that would mark its first since the failed $20 billion acquisition of Figma Inc. in 2022.

Adobe is set to pay $12 a share for Semrush, which had a market value of a little over $1 billion as of Tuesday, the Journal reported, citing people familiar with the matter. Semrush shares surged 71% in premarket trading to $11.55. Adobe’s stock was little changed.

Semrush provides a platform for businesses to analyze and optimize their online marketing, including how their companies appear in AI-generated search results.

Best known for the software that creative workers use such as Photoshop, Adobe also offers a suite of marketing and analytics tools, which has been generating an increasing amount of revenue for the company. Still, Adobe’s stock has struggled this year over concerns that advancements in AI will undermine the company’s core business. It has lost about a quarter of its value this year through Tuesday’s close.

Adobe walked away from its proposed acquisition of Figma in 2023 after clashing with regulators in Europe and the UK. The acquisition would have been one of the largest takeovers ever of a private software maker.

–With assistance from Paayal Zaveri.

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