Getty Images, the world’s biggest pictures and video distributor, agreed Monday to sell itself to the private equity firm Hellman & Friedman for $2.4 billion including debt.  The price, based on a bid of $34 a share, represents a 55 percent premium over the company’s share price on Jan. 18, the day before it announced it was “exploring strategic options.” Hellman & Friedman’s bid is 39 percent higher than Getty’s closing stock price of $24.45 on Friday.  Through a series of acquisitions, Getty grew to become the world’s largest distributor of high-quality pictures and video. Still, fears about increased competition from lower-cost Internet-based rivals have taken their toll on Getty’s stock price, prompting the company to seek a buyout.  “We are enthusiastic about entering the next phase of Getty Imagesâ evolution by partnering with Hellman & Friedman as we continue to provide innovative offerings to businesses and consumers in a very dynamic digital media environment,â Jonathan Klein, Getty’s cofounder and chief executive, said in a statement.  As recently as two weeks ago, Getty’s efforts to sell itself seemed in jeopardy as the credit markets continue to hamper efforts to finance large private equity bids. But Hellman & Friedman has obtained financing commitments from Barclays Capital, General Electric’s GE Commercial Finance and RBS Greenwich Capital.  The deal is expected to close in the second quarter this year, Getty said.  Getty Investments, the investment arm of the Getty oil fortune, and others including the co-founder and chairman, Mark Getty, who hold about 15 percent of Getty’ shares, will roll their shares into the new entity, the company said.  Getty, founded in 1995 in Seattle, has grown through a series of acquisitions into a go-to source for visual media, claiming an average service of 3.2 billion images and 4 million unique visitors at its Web site each month. The companyâs main selling point is the licensing of high-quality images from professional photographers around the world. Among its main clients are advertising agencies and media companies, including The New York Times. It also offers video footage for use in movies, television and the Internet.  Some of the companyâs premium offerings include the distribution of images from the Time Life and National Geographic collections. Early last year, Getty bought its biggest competitor, MediaVast, for $202 million, acquiring the WireImage service in the process. Last year, Getty held takeover talks with publicly held Jupitermedia, but the discussions ended quickly without a deal.  Gettyâs shares have declined more than 55 percent in the last year. Its shares fell 10 percent in August, when the company lowered its full-year profit estimate because of competition from low-cost rivals. Last November, it reported a third-quarter profit of $25.7 million, down 31 percent from a year earlier.  Last April, Getty also restated its earnings and took a $28 million to $32 million charge after an internal investigation into the backdating of stock options grants to executives.  Goldman Sachs served as a financial adviser to Getty Images, and Weil, Gotshal & Manges and Simpson Thacher & Bartlett worked as legal advisers. Barclays Capital and RBS Greenwich Capital served as financial advisers to Hellman & Friedman.  Go to Getty Images Press Release via Business Wire Â» Go to Previous Item from DealBook Â»
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