Investors have chance to snap up photo agency Getty Images
PHOTO agency Getty Images could be on the market after its owners appointed advisers to consider a potential sale or IPO.
Hellman & Friedman, the US private equity fund which bought the business for $2.4bn (£1.5bn) four years ago, is understood to be working with Goldman Sachs and JP Morgan Chase to help it decide whether to dispose of the business.
A source close to deal said that a sale or IPO could value the company at $4bn, a healthy return given that the owners have already paid themselves $875m in two special dividends.
Hellman & Friedman and JP Morgan declined to comment while Goldman Sachs was not immediately available for comment.
Investors have recently increased their interest in photo agencies and last week Getty’s smaller rival Shutterstock announced its intention to raise up to $115m in a float on the New York Stock Exchange.
Seattle-based Getty Images was founded in 1995 by Mark Getty – the British-born heir to the Getty oil fortune – and Jonathan Klein.
It adopted a programme of aggressive acquisitions in the fragmented photo agency business and became the first company to license photos online.
Before being taken private Getty recorded net income of $125.9m from revenues of $858m. It also generated cash of $249.3m.
Klein continues to be the firm’s CEO while Getty sits as chairman.