M&A News: SEMrush Stock (SEMR) Surges 75% as Adobe Approaches $1.9B Acquisition
SEMrush's stock surged over 75% after reports of Adobe's $1.9 billion acquisition deal. Adobe plans to buy SEMrush at $12 per share, a 78% premium. This move follows Adobe's failed $20 billion merger with Figma. SEMrush, founded in 2008, went public in 2021 and has a market cap of over $1 billion. Analysts rate SEMrush as a Moderate Buy with a $10.50 price target, implying a 33% upside.
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.
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According to the Wall Street Journal, which first reported the matter, 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. 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 33% upside potential from the current trading level.
