Shares of software provider Semrush jump 74% as Adobe to acquire company for $1.9 bln
Semrush, a small cap that owns a search-engine optimization and marketing platform used by Amazon, TikTok, and other companies, soared 74% yesterday, November 19, after it broke that Adobe will acquire Semrush the company at a premium. Needham cut its rating to “hold,” saying the stock now offers limited upside.
Details
Semrush shares jumped 74% yesterday to $11.76 per share on the New York Stock Exchange, the highest level since late February. The move followed the announcement that Adobe will buy the company for $12.00 per share, valuing Semrush at $1.90 billion.
Even after the rally, Adobe’s offer represents an 8.6% premium versus current quotes. Versus the November 17 close, the premium is nearly 78%. Semrush’s market capitalization now stands at about $1.75 billion.
The transaction has been approved by both boards and is expected to close in the first half of 2026. It still requires regulatory and Semrush shareholder approval. Adobe said Semrush’s founders and several large shareholders, who together have more than 75% of voting power, have already agreed to support it.
Logic of the deal
Semrush was founded in 2008 in St. Petersburg by Oleg Shchegolev and Dmitry Melnikov. The company later relocated and, in 2021, completed an IPO on the NYSE, offering 11.5 million shares at $14.00 per share.
Semrush built its business around search-engine optimization tools but recently introduced a generative engine optimization product, which helps brands to ensure that AI systems identify their content and use it in responses. More consumers are turning to AI platforms such as ChatGPT and Google’s Gemini for recommendations, information, and purchase decisions. Adobe Analytics data shows that AI-driven referral traffic to U.S. retail sites rose 1,200% in October year over year.
According to Anil Chakravarthy, head of the Adobe Digital Experience Business, AI is reshaping brand visibility, and companies that fail to adapt risk losing relevance and revenue. Adobe said the acquisition will allow it to offer marketers a unified view of how their brands appear across retail channels, search engines, and large language models.
Semrush’s solutions are used by Amazon, JPMorgan, and TikTok. In its most recent quarter, the company reported revenue of $112.1 million, up 15% year over year.
What analysts say
MarketWatch data shows the most common rating on Semrush shares is “hold.” Four analysts have this view, while one recommends “buy.” Three months ago, four had “buy,” and two had “hold.”
Needham lowered its rating from “buy” to “hold” after the deal was announced, Investing.com reported. It said the stock now trades close to the acquisition price, leaving limited upside. Needham added that, based on Semrush’s roughly 20% annual revenue growth, the valuation in the Adobe deal is “relatively low,” and a competing offer is possible. According to sources mentioned in the Investing.com article, deal negotiations could still break down.
In contrast, Emarketer analyst Grace Harmon told Reuters: "the price is steep as Semrush isn't a massive revenue engine on its own, so Adobe is likely paying for strategic value. The payoff could be high too if Adobe can quickly turn Semrush's data into monetizable AI products."
The AI translation of this story was reviewed by a human editor.
