Allegiant to acquire Sun Country in deal valued at $1.5 billion

Allegiant Travel Co. will acquire Sun Country Airlines Holdings Inc. in a cash-and-stock transaction valued at $1.5 billion, including debt from Sun Country, the two carriers announced in a joint statement Sunday.

Sun Country shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash per Sun Country share, the companies said. The offer represents a 19.8% premium to Sun Country’s closing stock price on Friday, according to the release.

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 more vacation destinations, including internationally,” Gregory C. Anderson, CEO of Allegiant, said in a statement.

This story was originally featured on Fortune.com

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