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Getty makes deal for $2.4 Billion
In a press-release issued today, Getty Images has announced an agreement to be bought by the private equity firm Hellman & Friedman LLC. The reported value of the deal of $2.4BB (or $34.00 per share) exceeds by 60% the originally estimated selling price of $1.5BB quoted by the New York Times when Getty first made public its intention to seek "strategic alternatives." According to the release, Getty’s Board of Directors has agreed to the deal and will recommend its approval to shareholders. The company expects to complete the transaction during the second quarter of 2008.
The release offers little information regarding whether or how Hellman & Friedman might change the way the company operates. A quotation from the private equity firm’s managing director, Andy Ballard, indicates the current management of Getty will remain in place: "We believe in the vision and execution capabilities of Jonathan Klein and his team, and share their commitment to the Company’s stakeholders and customers. We look forward to working with all of Getty Images’ employees to realize the full potential of its traditional businesses while furthering the evolution of Getty Images into a global digital media company."
Hellman & Friedman have made investments in media and marketing services companies in the past,. including DoubleClick Inc., Catalina Marketing Corporation, Young & Rubicam Inc., The Nielsen Company, and Axel Springer AG.
Web-site for Hellman & Friedman: HF.com
Posted in: Getty Images, News
