⁠Low-cost airline Allegiant will acquire Sun Country Airlines in a deal valued at about $1.5 billion, including debt, the companies said on Sunday.

As part of the agreement, Sun ‍Country shareholders will receive 0.1557 Allegiant shares ‍and $4.10 in cash for each share, valuing the stock at $18.89, representing a ⁠premium of about 19.8% to its Friday close of $15.77.

The deal will expand the combined company's network, adding ​more destinations across the United States and international markets. The fleet will include about 195 aircraft, with additional ‍orders and options.

The combined company, which will be headquartered ⁠in Las Vegas, is expected to generate $140 million in annual synergies by the third year after closing, and the transaction will be accretive to earnings per share ⁠in the first ​year. The deal ⁠is expected to close in the second half of 2026.

Upon ‍closing, Allegiant and Sun Country shareholders will own about 67% and ‌33% respectively of the combined company.

Allegiant CEO Gregory Anderson will lead the combined company as chief ⁠executive officer, ​while Robert ‍Neal will serve as president and chief financial officer. Sun Country CEO Jude Bricker will ‍join the board of directors.