The transaction includes both cash and stock and assumes approximately $400 million of Sun Country’s debt, News.Az reports, citing foreign media.
Under the deal, which has been approved by the boards of both airlines, Sun Country shareholders will receive $18.89 per share, consisting of $4.10 in cash and 0.1557 shares of Allegiant stock.
Provided the transaction is approved by regulators, the merger will be completed by the end of 2026 and create a combined airline in which Sun Country shareholders hold 33% and Allegiant Travel shareholders have a 67% stake.
Launched in 1997 as an early example of the low-cost model, Allegiant Air built a market of serving cities with traffic too low for mainstream airlines.
Although its website states that it currently serves 117 destinations across the U.S., Allegiant recently pulled out of LAX airport last fall after cutting its last flights into the city from Cincinnati and Bellingham over what it classified as “long-term strategic goals” and “flexible business value.”
Sun Country launched out of MSP in 1982 and ran a similar model of flying from smaller markets to various destinations in Florida, Mexico, and the Caribbean, as well as various routes between secondary cities on the U.S. mainland.
“We have long admired Sun Country for their well-run, flexible, and diversified business model that optimizes for year-round utilization and strong margins,” Allegiant CEO Gregory C. Anderson said in a statement. “Together, our complementary networks will expand our reach to more vacation destinations including international locations.”
