The companies plan to combine their extensive image libraries, projecting savings of between $150 million and $200 million within three years post-merger, as stated in their joint announcement.
The newly formed entity will be named Getty Image Holdings and is expected to have a valuation of approximately $3.7 billion, according to the press release.
“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,” said Getty Images chief executive Craig Peters.
“By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders,” he added.
Getty Images Holdings will maintain its listing on the New York Stock Exchange. As part of the agreement, Getty Images will pay $331 million in cash and will also issue 319.4 million shares to Shutterstock shareholders.
Upon completion of the merger, Getty Images shareholders will hold approximately 54.7 percent of the new company, while Shutterstock shareholders will possess about 45.3 percent. Craig Peters will serve as the CEO of the new organization, with Mark Getty, the current chairman of Getty Images and co-founder since 1995, taking on the role of chairman.
Getty Images, a leading provider of stock photography worldwide, was first listed on the stock market in 1996 but was taken private in 2008. In 2018, the Getty family purchased the 51 percent stake held by private equity firm Carlyle, inheriting a company burdened by significant debt from its previous owners. The agency returned to the public market at the end of 2021, with a valuation of around $4.8 billion.
In April 2023, the activist investment firm Trillium Capital made an unsuccessful bid to acquire the company for approximately $4 billion.