Allegiant Travel Co. will purchase Sun Country Airlines Holdings Inc. via a cash-and-stock transaction valued at $1.5 billion—including Sun Country’s outstanding debt—according to a joint statement released by the two carriers on Sunday.
Sun Country’s shareholders will receive 0.1557 shares of Allegiant’s common stock and $4.10 in cash for each Sun Country share they hold, the companies announced. The offer represents a 19.8% premium over Sun Country’s closing share price from Friday, per the statement.
The merged entity will offer more than 650 routes, including 18 international destinations across Mexico, Canada, the Caribbean, and Central America, the carriers said.
“By combining our complementary networks, we will expand our reach to more vacation destinations, including international locations,” stated Allegiant Chief Executive Officer Gregory C. Anderson in a statement.