Sun Country Airlines jumps after Allegiant agrees to buy carrier for $1.5 billion

Shares of budget airline Sun Country Airlines SNCY.O up 12.9% at $17.8 in early trading

Shares of Allegiant ALGT.O down 4.6% at $90.6

Low-cost airline Allegiant agrees to acquire SNCY in a deal worth about $1.5 billion, including debt

Deal values SNCY stock at $18.89 apiece, a ~19.8% premium to its Friday close

SNCY shareholders to receive 0.1557 ALGT shares and $4.10 cash per share

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 million 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%

As of Friday's close, SNCY was up 0.7% and ALGT down 4.4% over the past year