Allegiant Travel to Buy Sun Country in $1.5B Deal, Offering 19.8% Premium and $140M Synergies

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Allegiant Travel (NASDAQ:ALGT) executives and Sun Country enactment outlined plans for a definitive merger statement nether which Allegiant volition get Sun Country successful a cash-and-stock transaction, describing the woody arsenic a operation of 2 “flexible capacity” airlines with complementary networks and gross streams.

Allegiant CEO Greg Anderson said the implied worth is $18.89 per Sun Country share, representing a 19.8% premium to Sun Country’s closing terms of $15.77 connected January 9. Anderson said the statement values Sun Country astatine approximately $1.5 cardinal inclusive of $400 cardinal of nett debt. Allegiant President and CFO Robert Neal (referred to arsenic “BJ” connected the call) added that the transaction reflects a fully diluted equity worth of $1.1 billion and is expected to adjacent successful the second fractional of 2026, taxable to customary regulatory and shareholder approvals.

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Anderson described Allegiant and Sun Country arsenic highly complementary carriers built astir debased utilization and flexible scheduling geared toward highest leisure demand. He said some companies stock akin approaches to managing capableness by play and time of week, on with charter capabilities and a absorption connected diversified gross streams that enactment profitability.

Sun Country President and CEO Jude Bricker—who began his vocation astatine Allegiant—said the transaction aligns with his presumption that Sun Country should prosecute opportunities to go a stronger rival and supply much lawsuit choice. Bricker emphasized Sun Country’s multi-line concern exemplary spanning scheduled service, charter, and cargo, describing it arsenic consistently profitable, precocious margin, and free-cash-flow generating. He noted Sun Country’s 13th consecutive profitable quarter successful the astir caller 4th discussed and said the carrier’s cargo concern with Amazon has go an “increasingly important contributor” to revenue.

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Under the agreement, Sun Country shareholders volition person 0.1557 shares of Allegiant banal positive $4.10 successful cash per share, based connected the implied $18.89 full information arsenic of January 9, 2026, executives said. Neal said Allegiant shareholders are expected to ain astir 67% of the combined company, with Sun Country shareholders owning astir 33%.

The combined institution volition run nether the Allegiant name and stay headquartered successful Las Vegas, portion absorption committed to maintaining a important beingness successful Minnesota and said Minneapolis–St. Paul (MSP) would beryllium an important basal of operations. Leadership plans see Greg Anderson continuing arsenic CEO and Robert Neal continuing arsenic president and CFO. Bricker is expected to articulation the combined company’s committee and service arsenic an advisor to Anderson during the transition. Maury Gallagher is slated to service arsenic chairman. Neal said 2 further members volition beryllium added to Allegiant’s committee astatine closing, bringing the full to 11.