Low-cost carrier Allegiant has agreed to acquire Sun Country Airlines in a deal valued at roughly $1.5 billion, including debt, the companies announced on Jan. 11.
Under the terms of the agreement, Sun Country shareholders will receive 0.1557 shares of Allegiant stock along with $4.10 in cash for each Sun Country share. The offer values Sun Country at $18.89 per share, representing a nearly 20% premium over its Friday closing price of $15.77.
If approved by the Trump administration, the merged airline will continue operating under the Allegiant name. The combined carrier is expected to operate a fleet of approximately 195 aircraft and serve about 175 cities across more than 650 routes, according to Allegiant’s press release.
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“This combination is an exciting next chapter in Allegiant and Sun Country’s shared mission in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations,” said Gregory C. Anderson, Allegiant CEO, in a statement. “Together, our complementary networks will expand our reach to more vacation destinations including international locations.”
The combined airline will be headquartered in Las Vegas and is projected to generate about $140 million in annual synergies by the third year after the deal closes. The companies also said the transaction is expected to be accretive to earnings per share in the first year, with the merger anticipated to close in the second half of 2026.
Following the completion of the transaction, Allegiant shareholders are expected to own roughly 67% of the combined company, while Sun Country shareholders will hold about 33%. Allegiant CEO Maurice J. Gallagher Jr. will step aside, and Sun Country CEO Jude Bricker will join the board of directors. Tom Anderson will lead the merged airline as chief executive officer, with Robert Neal serving as president and chief financial officer.
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Sun Country’s strong presence at Minneapolis-St. Paul (MSP) International Airport is expected to remain a key part of the business after the merger. Allegiant said it plans to maintain a significant presence at MSP, giving customers from both airlines expanded options at the airport.
With the deal, the combined carrier aims to substantially broaden its route network, creating new opportunities for both leisure and business travelers nationwide. The expanded network is expected to connect major vacation destinations with smaller markets, offering more affordable and convenient travel options across the U.S.