04:43 AM EST, 01/12/2026 (MT Newswires) -- Allegiant Travel ( ALGT ) has agreed to acquire Sun Country Airlines (SNCY) in a cash and stock deal valuing Sun Country at about $1.5 billion, including $400 million in debt, the companies said. Monday

Under the terms of the deal, Allegiant will acquire Sun Country at an implied value of $18.89 per Sun Country share, a premium of 19.8% over Sun Country's closing price on Friday, the companies said.

Allegiant will pay Sun Country shareholders 0.1557 shares of Allegiant stock and $4.10 in cash for each share, the companies said.

The deal is expected to close in H2 2026, the companies said.

Upon closing, Allegiant and Sun Country shareholders will own approximately 67% and 33% of the merged company, respectively, the companies said.

Both airlines focus on budget leisure travel.

The companies said they expect the deal to be accretive to EPS a year after closing and to yield $140 million in annual synergies within three years after closing. Allegiant Chief Executive Gregory C. Anderson and President and Chief Financial Officer will retain their posts in the new company, the companies said.