NEW YORK: Getty Images Holdings, a visual media company and stock image supplier, and Shutterstock, an American provider of stock photography, footage, music, and editing tools, have agreed to merge into a single visual-content company with an enterprise value of approximately US$3.7 billion.
The companies said on Tuesday that Getty shareholders would own about 54.7 per cent of the combined company, which will retain the Getty name, at the closing of the deal. Shutterstock shareholders will own the remaining 45.3 per cent.
“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 Chief Executive Craig Peters, who will serve as CEO of the combined company.
“Getty and Shutterstock expect the combination to drive synergies of between US$150 million and US$200 million across capital expenditures and selling, general and administrative expenses within the first three years after a deal closes,“ reported The Wall Street Journal about the move.
About two-thirds of this is expected to be delivered within the first 12 to 24 months. The companies also expect the deal to add to earnings and cash flow beginning in the second year, it added.
