Adobe announced Wednesday that it has agreed to acquire search engine optimization company Semlash for approximately $1.9 billion in cash. The company aims to strengthen its suite of marketing products.
Adobe said in a statement that it is offering Semlash $12 a share, nearly double Tuesday’s closing price of $6.89 before news of the deal. Semlash’s market capitalization was about $1 billion at Tuesday’s close.
By acquiring Semrush, Adobe is betting that businesses will choose to invest in optimizing their content and web pages to make them more viewable to AI tools, as people increasingly use AI chatbots, agents, and AI browsers to do everything from getting news and finding recipes to shopping and booking travel. This is a new and large market for existing search engine optimization players like Semrush, especially as changes in consumer behavior are increasing traffic to websites from generated AI tools.
In fact, as of October, traffic from generated AI chatbots to retail websites increased 1,200% year-over-year, according to Adobe Analytics data.
Semrush has invested in what the company calls “generative engine optimization” and recently released tools to track and improve website performance using both traditional SEO techniques and AI engine optimizations such as ChatGPT, Claude, Copilot, Grok, and Perplexity.
“Brand perception is being reshaped by generative AI, and brands that fail to take advantage of this new opportunity risk losing relevance and revenue,” said Anil Chakravarthy, president of Adobe’s Digital Experience Business. “Semrush unlocks GEO as a new growth channel for marketers alongside SEO, driving visibility, customer engagement, and conversions across the ecosystem.”
