Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor at the New York Stock Exchange on Feb. 20, 2024.
Adobe 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 AI era.
"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.