Allegiant to acquire Sun Country Airlines in $1.5 billion merger

Allegiant Travel Company (NASDAQ: ALGT) announced it will acquire Sun Country Airlines (NASDAQ: SNCY) in a cash and stock transaction valued at approximately $1.5 billion, including $400 million of Sun Country's net debt.

Under the merger agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share, representing an implied value of $18.89 per share. This represents a 19.8% premium over Sun Country's January 9, 2026 closing price of $15.77.

The combined airline will serve 22 million annual customers across nearly 175 cities with more than 650 routes and 195 aircraft. Allegiant and Sun Country shareholders will own approximately 67% and 33% of the combined company, respectively.

"This combination is an exciting next chapter in Allegiant and Sun Country's shared mission in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations," said Gregory C. Anderson, Allegiant CEO.

The merger is expected to generate $140 million in annual synergies within three years and be accretive to earnings per share one year post-closing. The combined company will maintain headquarters in Las Vegas with a significant presence in Minneapolis-St. Paul.

Sun Country operates cargo services for Amazon Prime Air and charter contracts with casinos, Major League Soccer teams, collegiate sports teams, and the Department of Defense. The combined airline will operate both Airbus and Boeing aircraft with 30 aircraft on order and 80 options.

Following the close, Anderson will serve as CEO while Sun Country's Jude Bricker will join the board of directors alongside two additional Sun Country board members. The transaction requires shareholder approval from both companies, federal antitrust clearance, and other regulatory approvals.

The merger is expected to close in the second half of 2026, according to the company statement.

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