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Low-cost leisure airline Allegiant on Jan. 11 announced it will acquire Sun Country Airlines in a deal that values the stock and cash transaction at approximately $1.5 billion, including $400 million of Sun Country’s net debt.
In a Sunday afternoon announcement, the pair said the Allegiant brand would continue on, with the two carriers operating separately until achieving a single Federal Aviation Administration operating certificate. The combined carrier will be headquartered in Las Vegas and “will maintain a significant presence” in Minneapolis-St. Paul, Minnesota where Sun Country is based.
Related: Allegiant is adapting the 737 Max to its business model
The carriers, both of which are publicly traded, said they believe Allegiant will achieve $140 million in annual operating synergies “within three years following the closing and integration, primarily driven by the ability to provide more customers with more options across the combined network.” More details about the planned acquisition are expected during a Jan. 12 investor call hosted by Allegiant.
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