Shares of Semrush (SEMR +73.96%) soared on Wednesday after the digital marketing platform struck a deal to be acquired by Adobe (ADBE 1.96%) for $1.9 billion.
By the close of trading, Semrush's stock price was up about 74%.
Image source: Adobe.
Adobe offers a sweet deal to Semrush's shareholders
Under the terms of the agreement, Adobe will purchase Semrush for $12.00 per share in cash. That's a whopping 77.5% premium to the stock's closing price on Tuesday.
The acquisition is projected to close in the first half of next year, subject to regulatory and shareholder approval.
NYSE: SEMR
Key Data Points
Adobe needs Semrush's generative AI expertise
The deal comes at a time when companies are racing to adapt their marketing strategies to the rapid growth of artificial intelligence (AI)-powered applications. Brands are particularly keen to establish visibility on popular large language models (LLMs), such as OpenAI's ChatGPT and Alphabet's Gemini, which shoppers are using to inform their purchase decisions.
"With the advent of LLMs and AI-driven search, brands need to understand where and how their customers are engaging in these new channels," Semrush CEO Bill Wagner said in a press release.
Semrush is a leader in generative AI-focused marketing solutions, known as generative engine optimization (GEO). It works with companies like Amazon, JPMorgan Chase, and TikTok to boost their brand prominence and audience reach.
"Brand visibility is being reshaped by generative AI, and brands that don't embrace this new opportunity risk losing relevance and revenue," Adobe executive Anil Chakravarthy said.
