Allegiant’s $1.5B Merger Plan with Sun Country Remains on Track Las Vegas-based Allegiant Air is proceeding with its $1.5 billion merger plan with Minnesota-based Sun Country Airlines, despite ongoing challenges posed by high jet fuel prices. The deal, which had initially been scheduled for completion in the second half of 2026, is now expected to close by mid-May. Allegiant executives confirmed during a conference call with investors that shareholders from both airlines will vote on the merger on May 8, with the transaction anticipated to finalize on May 13. Regulatory approval for the merger was already secured, marking a significant step toward combining two of the nation’s largest leisure air carriers. The merger will unite Allegiant’s network of small and mid-sized localities with Sun Country’s routes serving larger cities, resulting in a combined fleet offering over 650 routes. This includes 551 routes operated by Allegiant and 105 by Sun Country, with the two airlines collectively serving approximately 22 million passengers annually. Under the terms of the deal, Allegiant will acquire Sun Country through a cash and stock transaction valued at $18.89 per Sun Country share. Shareholders of Sun Country will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share owned. This represents a 19.8 percent premium over Sun Country’s closing share price of $15.77 when the deal was first announced in January and an 18.8 percent premium based on the 30-day volume-weighted average price. The transaction values Sun Country at $1.5 billion, including $400 million in debt. Following the merger, Allegiant and Sun Country shareholders will own approximately 67 percent and 33 percent, respectively, of the combined company on a fully diluted basis.#nasdaq #allegiant_air #sun_country_airlines #greg_anderson #boeing_737
