Seattle’s Getty Images is acquiring Shutterstock to create a business worth approximately $3.7 billion, the companies announced Tuesday.

Getty and Shutterstock merge to combat industry decline, but there are hurdles that the combined company will need to clear.

Tuesday after the company said it plans to merge with rival stock photography service Shuttershock. Shares of the visual content marketplace were up 83% to $4.70 after announced that it had entered ...