Getty Images Holdings has reached an agreement to acquire Shutterstock, its rival in the photo-providing industry, in a deal that will create a company worth approximately $3.7 billion, including debt.

Getty Images is offering to pay about $28.85 per Shutterstock share in cash, or approximately 13.67 shares of Getty Images for each share of Shutterstock, according to an official statement published today, confirming a previous Bloomberg News report. Shutterstock shareholders could also choose to be paid in a mix of cash and Getty stock.

For the transaction, Getty Images is expected to pay $331 million in cash and $319.4 million in its own shares. Upon completion of the deal, Getty Images shareholders will own approximately 54.7% of the combined company, while Shutterstock shareholders will hold the remaining share. Craig Peters, CEO of Getty Images, will continue in the same role for the merged entity.

The agreement brings together two of the largest licensed visual content providers in the U.S., as artificial intelligence disrupts the content creation market and mobile phone cameras erode the value of photographs. It will “marry” Getty Images’ massive library of photos, illustrations, and videos with Shutterstock’s equally large search platform, which allows contributors to upload their content.

As of Monday’s close, Getty Images – which has a debt of around $1.4 billion – had lost about 73% of its market value since July 2022, when it went public via a SPAC merger. Shutterstock has fallen by about 50% during the same period. Following today’s announcement, Shutterstock surged by up to 44% in pre-market trading, while Getty saw an increase of up to 100%.

The companies believe that by collaborating, they can reduce costs and increase profitability, offering a broader range of services to the media, advertising, and content creation industries.