Getty Images Holdings, Inc (GETY) saw its stock surge over 70% in the pre-market trading session on Tuesday, driven by the announcement of a merger deal with rival Shutterstock in a transaction valued at approximately $3.7 billion.

Under the terms of the agreement, Getty Images will pay $331 million in cash and issue 319.4 million shares to Shutterstock shareholders. Upon completion, Getty stockholders will own around 54.7% of the combined company, while Shutterstock shareholders will hold the remaining 45.3%.

The merger, described as a "merger of equals," is expected to create a premier visual content company and a leading player in the industry. The combined entity, to be named Getty Images Holdings, Inc., will continue trading on the New York Stock Exchange under Getty's ticker "GETY."

According to the companies, the deal is projected to generate annual cost synergies between $150 million and $200 million by the third year, boosting earnings and cash flow from the second year onwards. Investors seem to view the deal positively, anticipating substantial synergies and growth opportunities for the merged company, hence the significant stock price rally for Getty Images.