(RTTNews) – Allegiant Travel Company (ALGT) and Sun Country Airlines (SNCY) announced that they have entered into a definitive merger agreement under which Allegiant will acquire Sun Country in a cash-and-stock transaction valued at approximately $1.5 billion, including $0.4 billion of Sun Country’s net debt.
SNCY closed at $15.77 on January 9, 2026, up $0.42, or 2.74%, at the end of regular trading. In overnight trading at 10:19 PM EST Sunday, the stock rose further to $18.50, a gain of $2.73, or 17.31%.
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 owned. This represents an implied value of $18.89 per share, reflecting a 19.8% premium over Sun Country’s closing price of $15.77 on January 9, 2026, and an 18.8% premium based on the 30-day volume-weighted average price.
Upon closing of the transaction, Allegiant shareholders will own approximately 67% of the combined company, while Sun Country shareholders will hold about 33% on a fully diluted basis.
The transaction is expected to be accretive to earnings per share one year post closing, while enhancing long-term financial results.
Following close, Allegiant will continue to be the publicly held parent company and the combined company will continue under the Allegiant name. However, each airline will operate separately until the airline operations obtain a single operating certificate from the FAA which consolidates the airlines’ operations, procedures, and safety protocols into one framework.
The combined company will be headquartered in Las Vegas and will maintain a significant presence in Minneapolis-St. Paul where Sun Country is based.
Upon closing, Allegiant CEO Gregory Anderson will serve as Chief Executive Officer of the combined company, and Robert Neal will serve as President and Chief Financial Officer. Sun Country President and CEO Jude Bricker will join the Board of Directors, alongside two additional Sun Country Board members, expanding the size of the Allegiant board to 11. Maury Gallagher, Chairman of the Board of Allegiant, will serve as Chairman of the Board of the combined company. Jude Bricker will serve as an advisor to Anderson to help ensure a smooth and successful integration.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2026, subject to receipt of U.S. federal antitrust clearance and other required regulatory approvals, the approval of both companies’ shareholders and other customary closing conditions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.