NEW YORK, United States (AFP) — Two of the world’s largest picture agencies, Getty Images and Shutterstock, announced plans to merge on Tuesday in a move that will create a giant in the visual content sector.

The firms intend to pool their gigantic image platforms, achieving savings of between US$150 million and US$200 million in the three years after the merger is completed, they announced in a joint statement.

The new company, which will be called Getty Image Holdings, will be valued at around US$3.7 billion dollars, according to the press release.

“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 Images Chief Executive Craig Peters.

“By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders,” he added.

Getty Images Holdings will continue to be listed on the New York Stock Exchange.

As part of the deal, Getty Images will offer to pay US$331 million in cash and will also offer 319.4 million of its shares to Shutterstock shareholders.

Once the deal is complete, Getty Images shareholders will own approximately 54.7 per cent of the new entity, and Shutterstock shareholders will own around 45.3 per cent.

Craig Peters will be the chief executive of the new company, which will be chaired by Mark Getty, the current chairman of Getty Images, which he co-founded in 1995.

A major provider of stock photography worldwide, Getty Images was first floated on the stock market in 1996 before being taken private again in 2008.

In 2018, the Getty family acquired the private equity firm Carlyle’s 51 per cent stake in the company, inheriting a group weighed down by the substantial debt incurred by its previous owners.

The agency returned to the stock market at the end of 2021 in a deal that valued it at around US$4.8 billion.

In April 2023, activist investment firm Trillium Capital unsuccessfully offered to buy the company at a price of around US$4 billion.

Getty Images is a commercial partner for AFP.