Allegiant to Acquire Sun Country Airlines in $1.5 Billion Deal

Allegiant Travel Company and Sun Country Airlines have entered into a definitive agreement for Allegiant to acquire Sun Country in a transaction valued at approximately $1.5 billion, including net debt.

The boards of directors for both companies unanimously approved the merger agreement. The combined airline will be headquartered in Las Vegas and plans to maintain a substantial operational presence in Minneapolis-St. Paul.

Under the terms of the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share. This arrangement values Sun Country shares at $18.89 each, which is about 19.8% higher than Sun Country’s closing price on January 9, 2026.

Upon completion of the transaction, Allegiant shareholders are expected to hold approximately 67% of the combined company, while Sun Country shareholders will own around 33%. The merger is subject to regulatory approvals, shareholder votes, and other customary closing conditions, with closing anticipated in the second half of 2026.

What the numbers show

• The deal values Sun Country at about $1.5 billion, including $400 million in net debt
• Sun Country shareholders will receive $4.10 cash and 0.1557 Allegiant shares per share
• The combined airline will operate more than 650 routes and serve about 22 million customers annually

The merged airline is expected to operate a fleet of approximately 195 aircraft, including additional orders and options. The company will serve more than 650 routes and approximately 22 million passengers each year.

According to Allegiant, the merger is projected to generate about $140 million in annual synergies by the third year after closing. The company also stated that the transaction is expected to be accretive to earnings per share in the first year following completion.

Leadership for the combined company has been outlined, with Gregory C. Anderson, Allegiant’s CEO, slated to serve as CEO. Robert Neal will take on the roles of president and CFO, and Sun Country CEO Jude Bricker will join the board of directors.

The transaction remains subject to regulatory review and approval by both companies’ shareholders. The companies stated that all customary closing conditions must also be met before the deal is finalized.

* This article is based on publicly available information at the time of writing.