Shutterstock on Tuesday announced a definitive agreement to acquire GIF library and image search engine Giphy.

Shutterstock CEO Paul Hennessy called the acquisition the “next step in Shutterstock’s journey.” The plan is to leverage Shutterstock’s capabilities in content and metadata monetization, generative AI, studio production and creative automation that will commercialization the GIF library as it is rolled out to customers.

The $53 million deal will give Shutterstock access to 1.7 billion daily users.

Collectively, these users generate 1.3 billion search queries, and more than 15 billion daily media impressions. These impressions are distributed through Giphy’s more than 14,000 API and software development kit (SDK) integrations, as well as its owned-and-operated website and mobile app.

The acquisition creates a partner network that includes Instagram, Facebook, WhatsApp, and TikTok, and expands Shutterstock’s content library to include GIFs and stickers, enabling Shutterstock Studios and Giphy Studios to create custom content solutions for brands and advertisers.

Giphy’s content library is fueled by individual artists who contribute original content and verified media partners including NBC, Disney, Netflix, the NFL, MLB, and NBA.

The current owner of Giphy, Meta Platforms, will enter into an API agreement to ensure continued access to Giphy’s content across Meta’s platform

The net cash payment will be paid at closing. Shutterstock will fund the cash consideration through cash-on-hand and existing revolving credit facility.

Giphy is expected to add minimal revenue in 2023 with focused monetization efforts taking place over the course of 2024.

The transaction is expected to close in June 2023, subject to customary closing conditions.

CapM Advisors acted as financial advisor to Shutterstock in connection with the transaction.