Shutterstock is merging with Getty Images to create a company valued at $3.7 billion, bringing together two of the world’s biggest visual content companies.

Although described as “a merger of equals transaction”, Getty’s shareholders will own approximately 54.7% of the merged company, Getty Images Holdings, while Shutterstock’s shareholders will hold 45.3%.

They expect the merger to cut costs by $200m over three years, and increase investment in technologies such as generative AI.

The “more robust cash flow” of the merged company would enable them to reduce borrowing costs and accelerate debt repayment.

“The services and support contributors have come to expect from us, and the relationship we have, will remain,” said Anna Dickson, VP, Content Strategy and Operations at Shutterstock.

“Our business will continue to operate as it always has, and we remain committed to supporting our contributors.”

Getty Images CEO Craig Peters said: “With the rapid rise in demand for compelling visual content across industries, there has never been a better time for [us] to come together.”

Getty Images was founded in 1995 by Mark Getty, who will chair the new company, and Jonathan Klein. Shutterstock has 450 million stock images and Getty 80 million. Getty owns the  iStock and Unsplash photo libraries.

Shutterstock tends to sells affordable images for budget-conscious customers while Getty Images aims to cover the needs of big companies that can spend more on premium imagery. 

The deal follows the acquisition in February 2020 of Alamy by PA Media Group, the UK-based news and information business.