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Allegiant to Acquire Sun Country in $1.5 Billion Cash-and-Stock Deal

Executives describe a tie-up targeting cost savings plus a broader network, with no immediate changes for travelers.

Overview

  • Sun Country shareholders will receive 0.1557 Allegiant shares plus $4.10 in cash per share, implying $18.89 a share and valuing the deal at about $1.5 billion including $400 million of net debt.
  • Upon closing, Allegiant and Sun Country investors are expected to own approximately 67% and 33% of the combined company, respectively, after unanimous board approvals at both airlines.
  • Allegiant CEO Gregory C. Anderson will lead the combined carrier, Robert Neal will serve as president and CFO, and Sun Country CEO Jude Bricker will join the board.
  • The merged airline plans to operate under the Allegiant name from a Las Vegas headquarters, retain a significant MinneapolisSt. Paul presence, and keep Sun Country’s charter and Amazon Prime Air cargo operations.
  • The companies project about $140 million in annual synergies by year three and expect EPS accretion in year one, with a targeted close in the second half of 2026 pending antitrust and shareholder approvals; separate operations will continue until a single FAA certificate is obtained.