Getty Images said on Friday it would merge with a blank-check firm backed by Neuberger Berman in a deal that values the supplier of stock photos and videos at about $4.8 billion, including debt, marking its return to public markets after 13 years.
The deal with CC Neuberger Principal Holdings II, which is also backed by CC Capital, will provide the company with proceeds of up to $1.2 billion, including funds from the special purpose acquisition company’s (SPAC) trust account and a $150 million private investment in public equity.
Getty, whose photo services are used by media organizations globally, was bought out by private equity firm Hellman & Friedman in 2008 and acquired by the Carlyle Group four years later in a $3.3 billion deal.
In 2018, the Getty family took control of the company by acquiring Carlyle Group’s stake, valuing it at about $3 billion.
A SPAC is a publicly listed shell company that raises funds with the intention of merging with a private company to take it public within two years of floating its shares.
Getty, whose debt jumped during the decade it was under the control of private equity companies, said the merger would reduce debt and increase cash flow to help grow its business.
Founded in 1995 by Mark Getty and Jonathan Klein, the company’s brands include iStock, its value offering for mid-sized businesses and individuals, and Unsplash, which Getty acquired earlier this year. It competes with Reuters News and Associated Press in the market for images meant for editorial use.
Craig Peters, Getty Chief Executive Officer since 2019, will continue to lead the company after its merger.
After the expected closure of the deal in the first half of next year, Getty will list on the New York Stock Exchange under the ticker symbol “GETTY.”
Source: Mint