Adobe Acquires Semrush for $1.9 Billion to Dominate AI Search

Adobe announced it will acquire Semrush Holdings for approximately $1.9 billion in an all-cash transaction, paying $12.00 per share. The deal represents a 77.5% premium over Semrush's closing price on November 18 and marks Adobe's largest acquisition since its failed $20 billion Figma bid collapsed under regulatory scrutiny in 2023. The transaction is expected to close in the first half of 2026, pending regulatory approval and shareholder votes.

The acquisition directly addresses a seismic shift in digital marketing: consumers are rapidly abandoning traditional search engines for large language models like ChatGPT and Google's Gemini. Adobe Analytics data reveals that traffic from generative AI sources to U.S. retail sites surged 1,200% year-over-year in October 2025 alone. Semrush brings more than a decade of search engine optimization expertise alongside newly developed generative engine optimization (GEO) capabilities designed specifically for AI-powered discovery platforms.

"Brand visibility is being reshaped by generative AI, and brands that don't embrace this new opportunity risk losing relevance and revenue," said Anil Chakravarthy, president of Adobe's Digital Experience Business. The combined solution will give marketers visibility into how their brands appear across owned channels, LLMs, traditional search, and the broader web. Semrush recently posted 33% year-over-year annual recurring revenue growth in its enterprise segment, serving clients including Amazon, JPMorganChase, and TikTok.

Adobe serves 99% of the Fortune 100 and has positioned itself as the leader in customer experience orchestration for the AI era. The company's existing tools like Adobe Experience Manager, Adobe Analytics, and the newly launched Adobe Brand Concierge will integrate with Semrush's platform. Semrush CEO Bill Wagner noted that "brands need to understand where and how their customers are engaging in these new channels" as LLMs and AI-driven search reshape the digital landscape.

The deal has secured commitments from Semrush's founders and shareholders representing over 75% of voting power. Wachtell, Lipton, Rosen & Katz advises Adobe on the transaction, while Centerview Partners and Davis Polk & Wardwell represent Semrush. Following the announcement, Semrush shares jumped more than 70% while Adobe's stock declined approximately 2%.