M&A News: SEMrush Stock (SEMR) Surges 75% as Adobe Approaches $1.9B Acquisition

SEMrush’s (SEMR) shares breached the dam early Wednesday, soaring over 75% after media reports indicated that creative software giant Adobe (ADBE) was close to taking over the Boston-based marketing software company in a $1.9 billion deal.

According to The Wall Street Journal, which first reported the news, Adobe is in advanced talks to take over SEMrush in a $12-per-share cash arrangement. The plan comes at a time when Adobe is facing pressure from declining valuations and investors’ concerns about its preparedness for the risk of AI disruption in the creative space.

Adobe Eyes SEMrush Takeover

SEMrush was founded in 2008 by Russian entrepreneurs Oleg Shchegolev and Dmitri Melnikov. The company, which went public in 2021, helps businesses optimize their online visibility through higher search engine ranking.

SEMrush’s market capitalization stands at just over $1 billion, as of Wednesday. Adobe’s reported offer represents about a 78% premium to the software company’s closing price of $6.76 per share on Tuesday.

Adobe Back in Hunt for Acquisition Deals

Adobe’s interest in taking over SEMrush marks its first such attempt after regulatory hurdles in Europe and the UK forced it to jettison its planned $20 billion merger with collaborative design platform Figma (FIG). Figma went public in August to initial wide applause and has emerged as a rising rival to Adobe.

As of 9:12 a.m. EST on Wednesday, ADBE stock remained mainly unchanged following the acquisition plan’s becoming public. Since the start of the year, Adobe’s shares have plunged about 27%.

Is SEMR a Good Stock to Buy?

Turning to Wall Street, analysts currently hold a Moderate Buy consensus rating on SEMrush’s shares. This is based on two Buys and two Holds issued over the last three months.

Moreover, at $10.50, the average SEMR price target implies over 55% upside potential from the current trading level.

See more SEMR analyst ratings here.