Two of the world’s largest picture agencies, Getty Images and Shutterstock, announced plans to merge on Tuesday, creating a powerhouse in the visual content sector.
The companies plan to combine their extensive image libraries, aiming to achieve savings of $150 million to $200 million within three years of the merger’s completion, according to a joint statement.
The newly formed company, to be named Getty Images Holdings, will be valued at approximately $3.7 billion.
“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 CEO 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 remain listed on the New York Stock Exchange.
As part of the deal, Getty Images will offer $331 million in cash and issue 319.4 million shares to Shutterstock shareholders. Upon completion, Getty Images shareholders will hold about 54.7% of the new company, with Shutterstock shareholders owning the remaining 45.3%.
Craig Peters will serve as the CEO of the combined company, while Mark Getty, co-founder and current chairman of Getty Images, will become chairman of the board.
Getty Images, a major provider of stock photography, first went public in 1996 before being taken private in 2008. In 2018, the Getty family regained control of the agency by acquiring Carlyle Group’s 51% stake.
The company returned to the stock market in late 2021 in a deal valuing it at $4.8 billion. In April 2023, activist investment firm Trillium Capital made an unsuccessful $4 billion buyout offer.
This merger is set to reshape the visual content industry, responding to increasing global demand for high-quality imagery.