Allegiant to Buy Sun Country in Deal Valued at $1.5 Billion
A Sun Country Airlines airplane in South Bend, Indiana.
Photographer: Joseph Weiser/Icon Sportswire/Getty ImagesAllegiant Travel Co. agreed to buy Sun Country Airlines Holdings Inc. in a $1.5 billion cash-and-stock transaction, further driving consolidation in the US airline industry amid intensifying competition.
Sun Country’s shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash per Sun Country share, the companies said Sunday. The offer is about 20% above Sun Country’s closing share price Friday, according to a release. Shares in Sun Country rose as much as 18% to $18.54 in premarket trading Monday, while Allegiant was little changed.