- Allegiant Travel Company
- 12 January 2026 12:40:03
Source: Sharecast
Sun Country shareholders will receive 0.1557 shares of Allegiant common stock under the terms of the deal, as well as $4.10 in cash, for each share owned.
A 19.8% premium over Sun Country’s closing share price on Friday, the offer values the low cost airline at $1.5bn, including $400m net debt.
“The combination will create a leading leisure-focused US airline,” the carriers said in a joint statement, “expanding service to more popular vacation destination across the US as well as international destinations, and providing more people with access to affordable, convenient air travel.”
As at noon GMT, shares in Minneapolis-St Paul-based Sun Country had put on 17% in pre-market trading.
Once the deal completes, the merged firm – which will be headquartered in Las Vegas, where Allegiant is currently based – will have a combined fleet of around 195 aircraft.
Allegiant chief executive Gregory Anderson, who will lead the combined business, called the deal an “exciting next chapter”.
He continued: “We have long admired Sun Country for their well-run, flexible and diversified business model that optimises for year-round utilisation and strong margins.
“Together our complementary networks will expand our reach to more vacation destinations including international locations.”
Jude Bricker, chief executive of Sun Country – which was founded in 1983 – added: “Today marks an exciting next step as we join Allegiant to create one of the leading leisure travel companies in the US.”
Bricker will join the board of directors once the deal has completed, likely in the second half of 2026, subject to regulatory approval.
Jefferies said: “This creates the ninth largest US airline by domestic capacity, relatively small versus the big four outside of Minneapolis-St Paul, where Sun Country owns 14% of outboard capacity to Delta Airlines' 74%.
“The deal marks the return of US airline consolidation and a quick check off our 2026 aerospace and defence bingo card.”