Getty Images is getting ready to make its return to the public markets more than a decade later. In 2008, the stock visuals supplier was taken private by Hellman & Friedman in a $2.4 billion transaction. Now, the company is prepping to make its second public debut via merger with the special purpose acquisition company (SPAC) CC Neuberger Principal II (NYSE:PRPB). The merger pegs Getty at an enterprise value of $4.8 billion. Plus, its agreement with the SPAC involves a total equity investment of up to $1.2 billion, which includes $150 million in private investment in public equity (PIPE).
So what else do you need to know?
CC Capital owns the CC Neuberger SPAC. Its founder and managing director Chinh Chu has high hopes for the merger, commenting that:
“Getty Images is an iconic brand that is well positioned to succeed in today’s dynamic digital economy. We are impressed by the acceleration of the business, and this partnership is another chapter in our history of establishing long-term partnerships with outstanding companies that have significant sources of competitive differentiation, opportunity for long term compounding, and multiple value creation opportunities.”
If shareholders approve the transaction, shares of Getty Images will trade on the New York Stock Exchange (NYSE). The ticker symbol will be GETY.
So, what else should investors know about the Getty Images SPAC merger? Let’s jump right in.
Getty Images SPAC Merger With PRPB Stock: 7 Things to Know
- Getty will be led by Craig Peters, who joined the company in 2007 and became CEO in 2019.
- Peters was drawn in by CC Neuberger’s management team and experience. He stated that, “It was really about CC Neuberger, I think much more so than it was about SPAC or IPO. That quantum of capital and that certainty and a partner that was very vested in the transaction and believed in the Getty business is really what differentiated them.”
- Gross proceeds from the deal with go toward reducing existing debt and capitalizing the company’s balance sheet for the future.
- Curious investors will appreciate insight to the $4.8 billion EV. Getty says that comes from using a 15.2x multiple for the enterprise value against 2022’s estimated adjusted EBITDA. The company estimates EBITDA for 2022 of $315 million.
- Getty Images competes with Associated Press and Reuters in the editorial images market.
- Additionally, Getty serves a variety of customers, ranging from individuals to small businesses to Fortune 500 companies. Getty offers a product portfolio that includes the iStock and Unsplash brands.
- Finally, the boards of Getty Images and CC Neuberger unanimously approved the transaction. Now the pressure is just on current shareholders.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
