Getty Images and Shutterstock merge to form $3.7 bn visual content company

New Delhi: Getty Images has merged with rival Shutterstock, creating an entity valued at an estimated $3.7 billion. 

The combined company will operate under the name Getty Images Holdings, Inc., and will continue trading on the New York Stock Exchange under the ticker symbol 'GETY'.

Getty Images CEO, Craig Peters, who will lead the merged entity, stated, “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. We aim to offer a richer, more diverse content library that caters to the evolving needs of our global customer base.”

The merger is structured to provide Shutterstock shareholders with a choice of receiving approximately $28.85 per share in cash, 13.67 shares of Getty Images common stock for each share of Shutterstock common stock they own, or a combination of both. At closing, Getty Images shareholders will own about 54.7% of the new company, with Shutterstock shareholders holding the remaining 45.3%.

Paul Hennessy, CEO of Shutterstock, commented, "We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs."

It's anticipated that the merger will generate between $150 million and $200 million in annual cost savings by the third year post-merger.

The merger is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the coming months.