Allegiant Air has agreed to acquire Sun Country Airlines.
The deal will be conducted through a combination of cash and stock, with an acquisition price of 18.98 US dollars per share. Shareholders of Sun Country Airlines will receive 0.1557 shares of Allegiant Air and 4.10 US dollars in cash for each share they hold.
Including Sun Country Airlines’ net debt of 400 million US dollars, the enterprise value is calculated at approximately 1.5 billion US dollars. This represents a 19.8% premium over the closing price on January 9. After the merger, shareholders will own approximately 67% and 33% of the combined company’s shares, respectively.
The merged company will continue to operate under the Allegiant name and will be headquartered in Las Vegas, United States. Following approval by shareholders of both companies and the relevant authorities, the parties aim to complete the transaction in the second half of 2026. Until authorization is obtained from the U.S. Federal Aviation Administration (FAA), both airlines will continue to operate independently.
Following the merger, Allegiant Air’s Chief Executive Officer (CEO), Gregory C. Anderson, will serve as CEO, Robert Neal will serve as President and Chief Financial Officer (CFO), and Maury Gallagher will serve as Chairman. Two members, including Sun Country Airlines’ President and CEO Jude Bricker, will join the Board of Directors, which will consist of 11 members in total.
Allegiant Air currently operates 551 routes mainly serving small and mid-sized cities in the United States, while Sun Country Airlines operates 105 complementary routes focusing on major metropolitan areas. Together, the two airlines will own 195 aircraft and serve approximately 175 cities. Their annual passenger volume will be 11 million. By increasing nonstop flights to underserved markets and resort destinations in and from the United States, the combined carrier aims to strengthen its competitiveness. They expect to realize annual synergy effects of 140 million US dollars within three years after integration.
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