Getty Pictures and Shutterstock will merge to create a large firm targeted on pictures and different visible content material in a deal valued at $3.7 billion, the 2 companies introduced on Tuesday.
The businesses — whose tie-up comes as pictures and different nonetheless pictures are going through a surge of contemporary competitors from pictures created by synthetic intelligence — stated Tuesday that they’ve complementary portfolios and {that a} merger will present clients with a broader array nonetheless imagery, video, music, 3D and different media.
Getty and Shutterstock will enter right into a merger of equals — which means that every agency comes into the settlement with roughly the identical market capitalization and operational scope to type a brand new, mixed entity.
“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,” Getty Pictures CEO Craig Peters stated in a ready assertion.
Getty Pictures shareholders will personal about 54.7% of the mixed firm at closing and Shutterstock stockholders will personal roughly 45.3%.
The merged firm, which shall be led by Peters, will proceed buying and selling on the New York Inventory Trade beneath the ticker image “GETY.”
Information of the merger despatched Getty inventory surging by practically 60% in pre-market buying and selling on Tuesday. The inventory was promoting at $2.57 a share on the shut of buying and selling on Monday.
Shares of Shutterstock have been up by round 30% earlier than the market opened on Tuesday.
The 2 corporations will mix their content material libraries in order to “enhance our product offering to meet diverse customer needs,” Shutterstock CEO Paul Hennessy stated in an announcement.
“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,” he stated.
Shutterstock shareholders can select to obtain both roughly $28.85 per share in money for every share of Shutterstock frequent inventory they personal; about 13.67 shares of Getty Pictures frequent inventory for every share of Shutterstock frequent inventory they personal; or a combined consideration of 9.17 shares of Getty Pictures frequent inventory plus $9.50 in money for every share of Shutterstock frequent inventory they personal.
Its board can have 11 members, comprised of Peters, six administrators designated by Getty Pictures and 4 administrators designated by Shutterstock, together with Hennessy. The chairman shall be Mark Getty, present chairman of Seattle-based Getty Pictures.
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