New York, January 11, 2026, 18:43 (ET) — The market has closed.
- Allegiant struck a cash-and-stock deal to acquire Sun Country, pricing SNCY at $18.89 per share—a roughly 19.8% premium over Friday’s close
- Companies project $140 million in annual synergies by the third year after closing and anticipate the deal will boost earnings per share starting in the first year post-close
- Investors will get their first live update on strategy and integration during a joint call scheduled for Monday, Jan. 12
Sun Country Airlines shares are set for close scrutiny when U.S. markets open Monday, following Allegiant Travel’s agreement to buy the carrier for roughly $1.5 billion, debt included. The deal values Sun Country at $18.89 per share, a roughly 19.8% premium over Friday’s closing price, the companies confirmed. (Reuters)
The deal comes as smaller airlines grapple with revenue that fluctuates sharply with the leisure travel cycle. Allegiant and Sun Country present the merger as a way to create a larger, more agile carrier that can quickly adjust capacity across different routes and seasons.
This is important for Sun Country shareholders as well, since the payout isn’t entirely cash. Part of it comes in Allegiant stock, meaning the deal’s implied value will fluctuate with ALGT shares until it closes.
Sun Country shareholders will get 0.1557 Allegiant shares plus $4.10 cash for every SNCY share, under the deal. Allegiant shareholders are set to hold roughly 67% of the merged entity, while Sun Country investors would own about 33%, the companies said.
The merged airline will be based in Las Vegas and operate roughly 195 planes, including pending orders and options, the companies announced. They added the deal aims to expand their reach across U.S. routes and global markets.
Management projects $140 million in yearly synergies by the third year post-close — a blend of cost savings and revenue boosts they anticipate from the merger. They also indicated the deal should be accretive to earnings per share, meaning it’s expected to increase profit per share starting in the first year after closing.
The companies aim to finalize the deal in the second half of 2026, pending U.S. antitrust approval, other regulatory sign-offs, and shareholder votes. Allegiant Chief Executive Gregory Anderson is set to head the merged firm, with Robert Neal taking on the roles of president and CFO. Sun Country CEO Jude Bricker will join the board.
“This combination is an exciting next chapter” for delivering “affordable, reliable, and convenient service,” Anderson said. Bricker added the deal “marks an exciting next step” and “delivers significant value” to Sun Country shareholders. The companies plan a joint investor conference call Monday, Jan. 12, at 8:30 a.m. ET. (PR Newswire)
Allegiant’s stock climbed 2.7% to finish Friday at $94.97, with Sun Country rising 2.6% to close at $15.77.
Airline deals often hit snags. Regulatory approvals can stall, integration may throw off schedules, and synergy targets remain projections, not certainties—particularly if demand weakens or costs climb faster than expected.
Monday brings the next call along with the first batch of deal filings. Traders will be tracking the stock-and-cash structure closely as soon as the market opens, while investors are likely to push management on timing, approvals, and progress toward hitting those synergy targets.
