07:14 AM EST, 01/07/2025 (MT Newswires) -- (Updates with additional details in the fourth and fifth paragraphs and the latest stock movement in the sixth paragraph.)

Getty Images Holdings ( GETY ) and Shutterstock ( SSTK ) said Tuesday they have signed a merger deal to form a combined entity valued at about $3.7 billion.

The new entity will be named Getty Images Holdings ( GETY ) and will continue to trade on the New York Stock Exchange under the GETY ticker, the parties added.

Under the terms, Getty will pay a total of $331 million in cash and 319.4 million shares of Getty Images ( GETY ) to Shutterstock ( SSTK ) shareholders, the companies said.

Shutterstock ( SSTK ) shareholders will be entitled to receive either $28.84870 a share in cash for each share they own, about 13.7 shares of Getty common stock for each Shutterstock ( SSTK ) common share, or a mixed consideration of 9.17 Getty common shares with $9.50 per Shutterstock ( SSTK ) share in cash, the parties said, adding these terms have been approved by the boards of both companies.

Upon completion, Getty stockholders will own about 54.7% of the new entity, while Shutterstock ( SSTK ) stockholders will hold approximately 45.3% ownership, according to the companies. Getty Chief Executive Craig Peters will serve as CEO of the new company, while Chairman Mark Getty will be the board chairman.

Shares of Getty surged past 73% in recent Tuesday premarket activity, while Shutterstock's ( SSTK ) shares jumped 38%.