Allegiant and Sun Country announced a merger agreement on Sunday under which Allegiant will acquire Sun Country in a cash-and-stock transaction. The deal implies a value of $18.89 per Sun Country share.
Under the terms, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each share they hold. Allegiant and Sun Country shareholders are expected to own approximately 67% and 33%, respectively, of the combined company on a fully diluted basis.
The transaction values Sun Country at approximately $1.5 billion, including about $400 million of net debt.
The combined airline will serve approximately 22 million customers annually, operate in nearly 175 cities with more than 650 routes, and have a combined fleet of 195 aircraft, along with additional orders and options.
According to the companies, the merger is expected to generate approximately $140 million in annual synergies by the third year after closing and be accretive to earnings per share in the first year following the completion of the transaction.
The two airlines said the combined operation will bring together their route networks, fleets, and third-party travel businesses under the Allegiant brand. The companies also plan to offer an expanded loyalty program.
Both carriers said the combined airline will maintain a significant operational presence in Minneapolis–St. Paul.
The transaction was unanimously approved by the boards of both Allegiant and Sun Country and is expected to close in the second half of 2026, subject to regulatory approvals, shareholder approvals, and other customary closing conditions, the carriers said.
