Allegiant Acquires Sun Country for $18.89 per Share in Cash and Stock Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Source: PRnewswire
- Transaction Overview: Allegiant has entered into a merger agreement with Sun Country valued at approximately $1.5 billion, including $400 million of net debt, expected to close in the second half of 2026, significantly enhancing the competitive position of both airlines.
- Shareholder Returns: Sun Country shareholders will receive a premium of 19.8% through a combination of 0.1557 shares of Allegiant common stock and $4.10 in cash per share, with the merger projected to be accretive to EPS in the first year, enhancing shareholder value.
- Operational Synergies: The merger is expected to generate $140 million in annual synergies, improving operational efficiency and expanding the service network to meet the needs of 22 million annual passengers, thereby enhancing market adaptability.
- Employee Opportunities: The merger will provide increased career development opportunities for employees while maintaining a significant presence in Minneapolis-St. Paul, fostering teamwork and enhancing service quality.
Analyst Views on ALGT
Wall Street analysts forecast ALGT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALGT is 71.56 USD with a low forecast of 55.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
5 Hold
1 Sell
Hold
Current: 92.470
Low
55.00
Averages
71.56
High
85.00
Current: 92.470
Low
55.00
Averages
71.56
High
85.00
About ALGT
Allegiant Travel Company is a leisure travel company focused on providing travel and leisure services and products to residents of under-served cities in the United States. The Company provides various travel services and products, including scheduled service air transportation, ancillary air-related products and services, third party products and services, and fixed-fee contract air transportation. The Company operates through Airline segment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
