Shutterstock are joining forces in a merger valued at around $3.7 billion, the companies announced on Tuesday. The merger will allow the companies to expand their stock photo libraries as they face increasing competition from AI-powered image creation tools.

Getty Images is the bigger company of the two, and its shareholders will own approximately 54.7% of the new entity, while Shutterstock shareholders will own 45.3%. Getty Images also owns the iStock and Unsplash brands. The company will simply be called Getty Images.

Seattle’s Getty Images is acquiring Shutterstock to create a business worth approximately $3.7 billion, the companies announced Tuesday.

Tuesday after the company said it plans to merge with rival stock photography service Shuttershock. Shares of the visual content marketplace were up 83% to $4.70 after announced that it had entered into a definitive merger agreement worth $3.

Getty Images already works with more than half a million content creators around the globe and serves customers in nearly every country. The outlet, which also

In total, Getty expects to pay $331 million plus 319.4 million shares of its stock to acquire Shutterstock. At today's share price, that works out to a valuation of about $1.35 billion on Shutterstock, or about 7% more than what Shutterstock costs after today's price spike.

Getty Images Holdings Inc. agreed to acquire rival stock-photo provider Shutterstock Inc. in a deal that would create a combined company worth about $3.7 billion including debt.

Under the deal, Shutterstock shareholders can opt to receive either $28.80 per share in cash, or 13.67 shares of Getty Images, or a combination of 9.17 shares of Getty and $9.50 in cash for each Shutterstock share they own.

Shares in Getty Images and Shutterstock surged after the image companies agreed to merge, creating a group worth about $3.7 billion including debt. Getty stock stood about 49% higher in recent premarket trading.