Sun Country Airlines jumps after Allegiant's $1.5 billion acquisition deal

Shares of budget airline Sun Country Airlines SNCY.O up 15.5% at $18.22 premarket

Low-cost airline Allegiant ALGT.O agrees to acquire SNCY in a deal valued at about $1.5 bln, including debt

SNCY holders to receive 0.1557 ALGT shares and $4.10 cash per share, valuing SNCY stock at $18.89, ~19.8% premium to its Friday close

Combined airline to operate ~195 aircraft and expand U.S. and international network; headquarters to remain in Las Vegas

Deal expected to close in H2 2026; $140 mln annual savings projected by year three and EPS accretion in first year after transaction is closed

Allegiant shareholders to own ~67% of combined company; Sun Country holders ~33% upon closing

As of last close, SNCY shares were up 0.7% and ALGT was down 4.4% over the last one year