To be well‑positioned to meet the evolving needs of creative, media, and advertising industries through combined investment in content creation, event coverage, and product and technology innovation, Getty Images and Shutterstock have now entered into a definitive merger agreement to create a premier visual content company with an enterprise value of approximately $3.7 billion.
With this development in place, the new entity will be named Getty Images Holdings and will continue to trade on the New York Stock Exchange under the ticker symbol “GETY”
As a combined company, Getty Images and Shutterstock will now offer a content library with greater depth and breadth for the benefit of customers, expanded opportunities for its contributor community and a reinforced commitment to the adoption of inclusive and representative content.
Furthermore, the stronger financial profile of the combined company is also expected to create increased capacity for product investment and innovation for customers in a fast‑evolving and highly competitive environment.
At close, Getty Images stockholders will own approximately 54.7% and Shutterstock stockholders will own approximately 45.3% of the combined company on a fully diluted basis and Getty Images’ CEO, Craig Peters, will serve as CEO of the combined company and the Chairman of the Board of Directors of the combined company will be Mark Getty, currently Chairman of Getty Images.
That said, the combined company will have an eleven‑member Board of Directors, comprised of Getty Images CEO Craig Peters, six directors designated by Getty Images and four directors designated by Shutterstock, including Paul Hennessy, Shutterstock CEO.
Strategic and Financial Benefits:
- Cutting‑edge innovation: Facilitates greater investment in innovative content creation, expanded event coverage, and customer‑facing technologies and capabilities such as search, 3D imagery and generative AI.
- Complementary portfolios: Creates a broader set of visual content products across still imagery, video, music, 3D and other asset types.
- Expanded opportunities for content creators: Provides contributors substantially greater opportunities to reach customers around the world.
- Strengthened balance sheet and greater cash flow generation: By deleveraging the combined balance sheet through the transaction and driving more robust cash flow, the combined company will be well positioned to accelerate debt repayment, reduce borrowing costs, and capitalize on new opportunities to create value for customers and stockholders.
- Significant synergies: Drives expected run rate synergies across SG&A and CAPEX between $150 million and $200 million achieved within the first three years post‑close, with approximately two‑thirds expected to be delivered within the first twelve to twenty‑four months.
- Compelling Financial Profile: On a pro forma 2024 basis the combined company would have an attractive financial profile:
- Revenue of between $1,979 million and $1,993 million, including 46% of subscription revenue
- Pre‑synergy EBITDA of between $569 million and $574 million
- Pre‑synergy Adjusted EBITDA less capital expenditures of between $461 million and $466 million
- Pre‑synergy net leverage of 3.0x pro forma 2024 pre‑synergy EBITDA
Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Shutterstock stockholders at close can elect to receive one of the following- $28.84870 per share in cash for each share of Shutterstock common stock they own, 13.67237 shares of Getty Images common stock for each share of Shutterstock common stock they own; or a mixed consideration of 9.17 shares of Getty Images common stock plus $9.50 in cash for each share of Shutterstock common stock they own.
Commenting on the development, Craig Peters, CEO, Getty Images, said, “Today’s announcement is exciting and transformational for our companies, unlocking multiple opportunities to strengthen our financial foundation and invest in the future—including enhancing our content offerings, expanding event coverage, and delivering new technologies to better serve our customers.”
“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. By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders,” he added
Furthermore, Paul Hennessy, CEO, Shutterstock, added, “We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs.”
“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. We look forward to working closely with the Getty Images management team to complete the transaction and drive the next chapter of growth,” he added.
