“`html
Adobe Inc. (ADBE) has reached a definitive agreement to acquire Semrush for $1.9 billion, or $12 per share in cash. The acquisition is expected to enhance Adobe’s suite of AI-driven customer experience tools, including Adobe Experience Manager and Adobe Analytics, by adding Semrush’s generative engine optimization and search engine optimization capabilities.
The deal comes as Adobe reports third-quarter fiscal 2025 results, with AI-driven annual recurring revenues (ARR) exceeding $5 billion. Adobe anticipates continued growth in ARR, boosted by new AI-first products that collectively contributed over $250 million. However, Adobe’s AI business remains small compared to competitors such as Microsoft and Alphabet, which dominate the market with substantial user bases and service integrations.
Adobe’s share price has dropped 38.1% over the past year, significantly underperforming the broader technology sector, which has returned 25.6%. The Zacks Consensus Estimate for Adobe’s fourth-quarter fiscal 2025 earnings stands at $5.39 per share, projecting a 12.1% increase year-over-year.
“`
