Shutterstock Chief Technology Officer James Chou (center) rings the opening bell of the New York Stock Exchange on February 14, 2014 in New York.
D Deepa Supil | Getty Images
visual content company Shutterstock and Getty Images will merge to create a $3.7 billion visual content company.
The two companies said Tuesday they have complementary product portfolios and that the merger will provide customers with a broader range of still images, movies, music, 3D and other media.
“With the demand for engaging visual content growing rapidly across industries, now is the perfect time to bring our two companies together,” Getty Images CEO Craig Peters said in a prepared statement.
Peters will serve as chief executive of the combined company.
“We are excited about the opportunity to expand our library of creative content and enhance our product offerings to meet diverse customer needs,” said Paul Hennessy, CEO of Shutterstock.
When the transaction closes, Getty Images shareholders will own approximately 54.7% of the combined company, and Shutterstock shareholders will own approximately 45.3%.
Shutterstock shareholders have the option of receiving approximately $28.85 in cash for each share of Shutterstock common stock they own; for each share of Shutterstock common stock they own, equivalent to approximately 13.67 shares of Getty Images common stock; or 9.17 shares of Getty Images common stock plus their Blended consideration of $9.50 in cash for each share of Shutterstock common stock.
The combined company will operate under the name Getty Images and will continue to trade on the New York Stock Exchange under the ticker symbol “GETY.”
Its board of directors will have 11 members, including Peters, six directors appointed by Getty Images, and four directors appointed by Shutterstock, including Hennessy. The chairman will be Mark Getty, current chairman of Seattle-based Getty Images.
New York-based Shutterstock was up nearly 30% before the open, while Getty Images shares soared more than 73%.
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