Getty Images and Shutterstock, two visual content companies, have announced plans to merge, forming a $3.7 billion powerhouse.
Getty Images said in a statement on Tuesday that the merger will create ‘Getty Images Holdings, Inc.’ and that it will continue to trade on the New York Stock Exchange under the ticker code “GETY”.
They said the merger is geared at handling the difficulties and opportunities of the artificial intelligence (AI) era.
According to the announcement, the merger will leave Getty Images investors with about 54.7 percent of Getty Images Holdings, while Shutterstock stockholders will own 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.
Peters said:
“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.”
“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 governed by Peters and an eleven-member board of directors, with six directors appointed by Getty Images and four by Shutterstock.
Mark Getty, the present chairman of Getty Images, will also serve as the chairman of the combined company’s board of directors.
Getty Images stated that the merger is projected to result in annual cost savings of $150 million to $200 million within three years of completion.
