Getty Images pays US$96m to buy Jupitermedia
Online imaging firm Getty Images is to pay US$96m to acquire Jupitermedia as the market for image database firms continues to consolidate.
Three years ago Getty acquired Kerry-based digital image firm Stockbyte from a management team led by Jerry Kennelly for €135m.
The deal is understood to enable Jupitermedia to pay off all of its debts, but will leave the company with a non-cash loss of US$95m when the deal closes.
The board of directors of Jupitermedia has approved the transaction and resolved to recommend that Jupitermedia’s stockholders approve the transaction.
Completion of the transaction is subject to approval by Jupitermedia's stockholders, regulatory approval and other customary closing conditions.
In addition, Alan Meckler, Jupitermedia's Chairman, CEO and a significant stockholder, and certain other stockholders, who, with Meckler, collectively hold approximately 35.9pc of Jupitermedia's outstanding stock, have entered into definitive support agreements with Getty Images to vote in favour of the transaction.
Jupitermedia says the transaction is not subject to a financing condition. In connection with the transaction, Jupitermedia will retain ownership of its Peoria, Illinois building and property and lease the facility to Getty Images. Jupitermedia expects to incur a non-cash loss of approximately US$95m upon the closing of the transaction.
Following the completion of the sale of Jupiterimages to Getty Images, Jupitermedia will continue to operate its online media business, which consists of five distinct networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Mediabistro.com and Graphics.com for media and creative professionals.
“We believe that this transaction will be beneficial to Jupitermedia and its stockholders, both in the near term and the long run, as it will allow Jupitermedia to pay off all of its bank debt,” Meckler stated.
“Upon closing of the transaction, we will continue focus on the further development and growth of our online media division,” Meckler added.
By John Kennedy