Shutterstock (NYSE:SSTK) shares climbed about 5% on Monday, while Getty Images (NYSE:GETY) gained 7%, after the U.S. Department of Justice granted antitrust clearance for the companies’ proposed merger of equals.
The DOJ completed its review and allowed the waiting period under the Hart-Scott-Rodino Act to expire without imposing conditions, the companies said, marking a key regulatory step toward combining two major providers in the stock imagery and digital content licensing industry.
“We are very pleased with the DOJ’s decision in recognizing the merits of this transaction,” said Craig Peters, CEO of Getty Images. “With today’s DOJ clearance, we take a significant step forward in bringing together these two companies and unlocking opportunities to strengthen our financial foundation and invest in our future.”
Shutterstock CEO Paul Hennessy added, “By combining our complementary strengths, we will be able to deliver even better service and support for customers and contributors over time.”
The companies expect the merger to deliver meaningful cost synergies, particularly across selling, general and administrative expenses as well as capital spending once the transaction is completed.
Regulatory review is still ongoing in the United Kingdom, where the Competition and Markets Authority released an interim report on February 19 as part of a Phase 2 investigation. Shutterstock and Getty Images said they continue to engage with the regulator ahead of a final ruling expected by April 19 and remain optimistic the outcome will align with decisions from U.S. and other international authorities.
Both firms said they are continuing efforts to obtain the remaining approvals required to close the deal.