Allegiant to buy Sun Country in $1.5 billion cash and stock deal
An Allegiant Airlines jet flies out of Las Vegas Airport.
Nick Potts | Getty Images
Allegiant said Sunday it is acquiring fellow budget carrier Sun Country in a $1.5 billion cash deal.
The plan for a combination comes as budget airlines in the U.S. have faced a surge in costs following the pandemic and the increase in domestic capacity.
The transaction has an implied value of $18.89 for each Sun Country share. That carrier’s shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share owned, Allegiant said Sunday.
The deal is a premium of almost 20% over Sun Country’s closing stock price on Friday, the airline said.
The deal will test the Trump administration’s appetite for an airline merger.
The Biden administration challenged JetBlue Airways’ acquisition of Spirit Airlines, which is now in its second bankruptcy and fighting for survival. A federal judge sided with the Biden Justice Department and blocked the JetBlue-Spirit deal.
The Biden administration, however, did clear Alaska Air’s nearly $2 billion acquisition of Hawaiian Airlines in 2024.
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