Adobe Inc. has agreed to buy marketing software company Semrush Holdings Inc. for US$1.9 billion (approximately A$2.9 billion), marking its first takeover announcement since the failed $20 billion Figma Inc. acquisition in 2022.

The all-cash deal values Semrush at US$12 per share (approximately A$18) and is expected to close in the first half of 2026.

The acquisition would be Adobe’s third-largest, after purchasing Marketo for US$4.75 billion (approximately A$7.1 billion) in 2018 and Macromedia for US$3.4 billion (approximately A$5.1 billion) in 2005.

Semrush shares surged as much as 75% to a record US$11.83 (approximately A$18) after markets opened in New York, marking the biggest intraday gain since the company’s March 2021 IPO.

Adobe’s stock declined as much as 2.2%.

Semrush is a platform that allows businesses to analyse and optimise online marketing, including how companies appear in AI search results.

Adobe stated the acquisition will help offer “a comprehensive solution that gives marketers a holistic understanding of how their brands appear across owned channels, LLMs, traditional search and the wider web.”

While best known for creative software like Photoshop, Adobe also offers marketing and analytics tools, generating increasing revenue.

However, Adobe’s stock has struggled this year over concerns that AI advancements will undermine its core business, losing about a quarter of its value through Tuesday’s close.

Adobe walked away from its proposed Figma acquisition in 2023 after clashing with European and UK regulators.

That deal would have been one of the largest private software maker takeovers ever at US$20 billion (approximately A$30 billion).

The Semrush acquisition positions Adobe to compete in the evolving marketing technology landscape, where AI-powered search and large language models are transforming how brands manage online presence.

As traditional search evolves and AI-generated results become more prominent, marketing platforms must adapt to help businesses maintain visibility across multiple channels.

The Wall Street Journal first reported that the deal was nearing completion.