Allegiant to Acquire Sun Country Airlines in a $1.5 Billion Cash and Stock Deal

Allegiant Travel Company (ALGT) entered a merger agreement on January 11, 2026, to acquire Sun Country Airlines Holdings, Inc. (SNCY) in a cash and stock deal valued at $1.5 billion.

Deal Structure:

Allegiant will acquire Sun Country in a cash and stock transaction at an implied value of $18.89 per Sun Country share, representing a 19.78% premium from the stock’s last close.

Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash for each Sun Country share owned.

Company Profile:

Sun Country Airlines is a hybrid low-cost airline based in Minnesota that provides scheduled passenger service, charter flights, and cargo operations, including service for Amazon, flying leisure and VFR customers across the United States and to destinations in Mexico, Central America, Canada, and the Caribbean.

Allegiant is a Las Vegas–based leisure travel company whose airline connects travelers in underserved small and mid-sized U.S. cities to leisure destinations through nonstop, low-fare flights, complemented by ancillary travel products and services.

Deal Details and Timeline:

Upon closing, Allegiant shareholders will own approximately 67% of the combined company, while Sun Country shareholders will own about 33%.

The combination brings together Allegiant’s service in small and mid-sized cities with Sun Country’s service in larger cities, creating a network of more than 650 routes, including 551 Allegiant routes and 105 Sun Country routes.

With access to Sun Country’s international network in Mexico, Central America, Canada, and the Caribbean, the combined airline will offer Allegiant customers service to 18 international destinations from its small and mid-sized cities.

Allegiant expects to generate $140 million in annual benefits within three years after closing by offering customers more choices across the combined network.

At closing, the combined airline is expected to operate roughly 195 aircraft, with 30 on order and 80 additional options, across both Airbus and Boeing fleets.

Allegiant CEO Gregory Anderson will serve as CEO of the combined company, and Robert Neal will serve as the Chief Financial Officer. Sun Country CEO Jude Bricker will join the Board, along with two other Sun Country board members, expanding the board to 11 members.

Allegiant Chairman Maury Gallagher will remain Chairman of the combined company. Bricker will also serve as an advisor to Anderson to support the integration process.

The combined company will be headquartered in Las Vegas and will maintain a significant presence in Minneapolis-St. Paul, where Sun Country is based.

The deal is expected to close in the second half of 2026.

Sun Country received financial advice from Goldman Sachs and legal advice from Milbank. Allegiant received financial advice from Barclays and legal advice from Skadden, Arps, Slate, Meagher & Flom.

Allegiant is paying 6.18 times EBITDA for Sun Country Airlines.

Deal Metrics:

For more in-depth information about this merger and acquisition transaction, please visit the Deal Metrics page at the following link:

Deal Metrics for the acquisition of Sun Country Airlines Holdings, Inc. (SNCY) by Allegiant Travel Company (ALGT)

The comprehensive Deal Metrics page includes:

• A chart detailing the spread history of the merger from the announcement to eventual completion or failure.
• A timeline of events as the merger progresses, including the expiration of the HSR period, regulatory approvals, shareholder votes, and more.
• News and SEC filings.
• A record of deal updates.
• And various other crucial details.

Disclaimer: Please conduct your own due diligence before buying or selling any securities mentioned in this article. We do not guarantee the completeness or accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article