NEW YORK (XINHUA) – Visual media company and supplier of stock images Getty Images Holdings and American provider of stock photography, footage, music and editing tools Shutterstock have agreed to merge into one visual-content company with an enterprise value of about USD3.7 billion.
The companies said 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 chief executive officer of the combined company.
“Getty and Shutterstock expect the combination to drive synergies of between USD150 million and USD200 million across capital expenditures and selling, general and administrative ex-penses 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.
