Adobe announced on Wednesday an agreement to acquire search engine optimization (SEO) company Semrush for approximately $1.9 billion in cash. The acquisition aims to augment Adobe's existing suite of marketing offerings, strategically positioning the company to address evolving digital visibility requirements driven by artificial intelligence.
Under the terms of the deal, Adobe will offer $12 per share for Semrush, a price that represents nearly double Semrush’s closing price of $6.89 on Tuesday, prior to the announcement. Semrush's market capitalization stood at approximately $1 billion as of Tuesday's market close.
Adobe's investment reflects a strategic bet on companies increasing their efforts to optimize content and web pages for greater visibility to AI tools. This shift is predicated on the increasing use of AI chatbots, agents, and browsers by consumers for information retrieval, shopping, and travel booking, creating a new market for “generative engine optimization” (GEO).
Data from Adobe Analytics indicates this trend is already impacting digital commerce. As of October, traffic to retail websites originating from generative AI chatbots surged by 1,200% compared to the previous year, highlighting the growing significance of AI in consumer digital pathways.
Semrush has been actively investing in this emerging field, developing capabilities in generative engine optimization. The company recently launched a tool designed to track and enhance website performance across both traditional SEO techniques and optimization specifically for AI engines such as ChatGPT, Claude, Copilot, Grok, and Perplexity.
Anil Chakravarthy, president of Adobe’s Digital Experience Business, commented on the acquisition, stating, "Brand visibility is being reshaped by generative AI, and brands that don’t embrace this new opportunity risk losing relevance and revenue. With Semrush, we’re unlocking GEO for marketers as a new growth channel alongside their SEO, driving more visibility, customer engagement and conversions across the ecosystem."
