Getty Images is going public through a special purpose acquisition company (SPAC) deal that values the firm at $4.8 billion and is supported by CC Capital and Neuberger Berman, according to a Financial Times report Friday (Dec. 10).
That valuation is more than 15 times Getty’s 2022 EBITDA. The CC-Neuberger SPAC has raised about $1.2 billion in equity for the deal, including $150 million from private investment in public equity (PIPE) financing.
That money will be used to pay off Getty’s debt and capitalize its balance sheet, the FT report says.
Getty’s shareholders will own about 64% of the company when the SPAC is completed, which is expected next year. The company, which has more than 135 million images in its archives and supports countless media companies, went private in 2008 in a $2.4 billion deal with Hellman & Friedman.
Private equity firm Carlyle acquired controlling interest in Getty Images in 2014, before selling the stake to the Getty family. Koch Industries’ investment arm bought a minority stake in the photo repository in 2018.
“Today’s transaction is another milestone in the transformation of Getty Images,” said Getty Images Chair and Co-founder Mark Getty in the FT report. “As a public company Getty Images will be able to aggressively invest in more product and service solutions to address the needs of all of our customers.”
Craig Peters, Getty’s chief executive since 2019, will remain in place once the SPAC is completed. The Getty board has approved the CC-Neuberger acquisition and the decision to take the company public. The SPAC’s shareholders must sign off on the deal. Getty would likely trade under the symbol GETY.
Related: Gensler Seeks SPAC Investor Protection Recommendations From SEC Staff
Securities and Exchange Commission (SEC) Chair Gary Gensler said this week the commission is likely to begin regulating blank-check companies more closely. He has reportedly asked SEC staff to get recommendations on how to ensure SPAC investors get the same protections as regular listings do.
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