Getty Images and Shutterstock, two visual content companies, have announced decisions to merge into a $3.7 billion powerhouse.
In a statement on Tuesday, Getty Images said the merger will birth ‘Getty Images Holdings, Inc.’ and it will continue to trade on the New York Stock Exchange under the ticker symbol “GETY”.
Getty Images said the merger is aimed at navigating the challenges and opportunities of the artificial intelligence (AI) era.
According to the statement, the merger will result in Getty Images investors owning approximately 54.7 percent of Getty Images Holdings, while Shutterstock stockholders will hold the remaining 45.3 percent.
Speaking on the deal, Craig Peters, chief executive officer (CEO) of Getty Images, said the merger would focus on bolstering content offerings, improving event coverage, and leveraging new technologies.
“Today’s announcement is exciting and transformational for our companies, unlocking multiple opportunities to strengthen our financial foundation and invest in the future—including enhancing our content offerings, expanding event coverage, and delivering new technologies to better serve our customers,” Peters said.
“With the rapid rise in demand for compelling visual content across industries, there has never been a better time for our two businesses to come together.
“By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders.”
On his part, Paul Hennessy, CEO of Shutterstock, said the merger would go a long way to expand the firm’s creative content library and enhance its product offering to meet diverse customer needs.
“We expect the merger to produce value for the customers and stockholders of both companies by capitalizing on attractive growth opportunities to drive combined revenues, accelerating product innovation, realizing significant cost synergies and improving cash flow,” Hennessy said.
“We look forward to working closely with the Getty Images management team to complete the transaction and drive the next chapter of growth.”
Getty Images Holdings will be led by Peters and an eleven-member board of directors, with six directors designated by Getty Images and four directors designated by Shutterstock.
Also, the chairman of the board of directors of the combined company will be Mark Getty, who is currently chairman of Getty Images.
Getty Images said the merger is expected to generate annual cost savings of $150 million to $200 million within three years of its completion.