American photo agency Getty Images is acquiring its major competitor, Shutterstock. According to a joint statement, they are two of the largest providers of licensed imagery in the United States and are worth around 3.7 billion dollars, including debt.
Based on the current share price, Getty Images is paying $3Shutterstock $ 331 million in cash and 319.4 million in shares. Shutterstock shareholders can receive $28.85 per share or 13.67 shares of Getty Images, or a combination of both options.
After the acquisition, Getty Images shareholders will own the majority (54.7 percent) of the joint venture ‘Getty Images Holdings’. The company will also retain its New York stock exchange listing.
With the acquisition, the two want to save costs and increase profitability. After three years, the cost savings will amount to 150 to 200 million dollars. The photo company also expects to be able to invest and innovate more due to a better financial basis. Craig Peters will become CEO, and Mark Getty will be chairman.
Last week, press agency Bloomberg reported, based on insiders, that Getty Images was investigating a merger with Shutterstock.