Allegiant Travel Co. will acquire Sun Country Airlines Holdings Inc. in a cash-and-stock deal valued at $1.5 billion including Sun Country’s debt, the two carriers said in a joint statement on Sunday.
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. The offer represents a premium of 19.8% over Sun Country’s closing share price on Friday, according to the statement.
The combined entity will provide more than 650 routes, including 18 international destinations in Mexico, Canada, the Caribbean and Central America, the companies said.
“Together, our complementary networks will expand our reach to more vacation destinations including international locations,” said Allegiant Chief Executive Officer Gregory C. Anderson in a statement.