Stock image giants Getty Images and Shutterstock have entered into a definitive merger agreement to created a combined entity valued at approximately US$3.7 billion.

The two companies will combine in a merger of equals transaction, with the combined entity to go under the Getty Images name and continue to trade on the New York Stock Exchange under the ticker symbol 'GETY'.

At close, Getty Images’ CEO, Craig Peters, will serve as CEO of the combined company. 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. The Chairman of the Board of Directors of the combined company will be Mark Getty, currently Chairman of Getty Images.

"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", said Peters. “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.”

"We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs", added Hennessy. “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.”

The merger is expected to result in annual cost synergies of between $150 million and $200 million by year three and is also expected to be accretive to earnings and cash flow beginning in year two. The stronger financial profile of the combined unit will create increased capacity for product investment and innovation for customers in a fast-evolving and highly competitive environment.

In addition to financial benefits, the merger will also bring together both company's content libraries for the benefit of customers, as well as expanding opportunities for its contributor community and a reinforcing a commitment to the adoption of inclusive and representative content.

The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals, the approval of Getty Images and Shutterstock stockholders and the extension or refinancing of Getty Images’ existing debt obligations. Getty Images and Shutterstock will hold a conference call to discuss the transaction today, January 7, 2025, at 8:30 a.m. Eastern Time.