Getty Images looking to go public, again, in $4.8 billion SPAC maneuver
Stock content company Getty Images is looking to go public again, after more than a decade as a private company, in a $4.8 billion deal that will place the company on the New York Stock Exchange.
To go public, the company said it entered into a business combination agreement with CC Neuberger Principal Holdings II, a publicly traded special purpose acquisition company (SPAC) formed through a partnership between CC Capital and Neuberger Berman. Upon closing, the newly reformed Getty Images will be listed on the New York Stock Exchange under the symbol “GETY.” Craig Peters, who joined the company in 2007 and has served as CEO since 2019, will remain.
Founded in 1995, the company has a long history of changing ownership. The company was listed on the NASDAQ in 1996 and, in 2008, the Hellman & Friedman private-equity firm acquired Getty Images for about $2.4 billion. Four years later, the company changed hands again, this time with The Carlyle Group for $3.3 billion. By 2018, however, the Getty family had taken a controlling interest and the company announced Koch Equity Development LCC, the investment arm of Koch Industries, whereby KED will make a $500 million non-controlling preferred equity investment in the company. Koch Equity Development will remain as a partner in the company.
“We look forward to working in partnership with its exceptional management team, the Getty family, and Koch Equity Development to generate long-term value for Getty Images and its shareholders as a publicly-traded company., said Charles Kantor, Managing Director and Senior Portfolio Managerm, Neuberger Berman, in a press release
“We invested in Getty Images more than three years ago because we were convinced the company was at an inflection point in its transition to a recurring, subscription-based service with a sustainable long-term growth profile,” said Brett Watson, President of Koch Equity Development. “Behind the leadership of Mark Getty and Craig Peters, the latest phase of this transformation is complete, and we look forward to continuing to support the company as it pursues new growth vectors with a public company balance sheet.”
Acquisitions and change
Over the years, Getty made numerous acquisitions, including iStock in 2006 and Unsplash earlier this year, which continue to operate as marketplaces.
According to financial disclosures filed with the SEC, Getty Images’ revenue has been dropping for the past three years. In 2020, revenue was $814 million, compared to $868 million in 2018. The net loss, however, improved to $39 million in 2020 from $51 million in 2019. Also, gross profit is trending upwards and the company sees a big future in video content licensing and in international markets.
