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 airlines said in a joint statement Sunday.
Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share, the companies said. The offer represents a 19.8% premium to Sun Country’s closing price on Friday, the statement said.
The combined entity will offer 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 additional vacation destinations, including international locations,” Allegiant Chief Executive Officer Gregory C. Anderson said in a statement.