Overview
- Sun Country shareholders will receive 0.1557 Allegiant shares plus $4.10 in cash per share, implying $18.89 per share and a roughly 19.8% premium.
- Upon closing, Allegiant investors are expected to own about 67% of the combined company and Sun Country investors about 33%, with Greg Anderson as CEO, Robert Neal as president and CFO, and Jude Bricker joining the board.
- The combined carrier plans a fleet of roughly 195 aircraft serving about 175 cities across more than 650 routes, reaching around 22 million passengers annually with little reported route overlap.
- Both airlines will operate separately until a single FAA certificate is obtained, the headquarters will remain in Las Vegas with a significant presence in Minneapolis–St. Paul, and Sun Country’s cargo and charter operations including Amazon Prime Air are expected to continue.
- Management projects approximately $140 million in annual synergies by year three and EPS accretion in the first year after close, while shares rose for Sun Country and fell for Allegiant on Monday following the announcement.