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Allegiant-Sun Country's $1.5B Deal Gains U.S. Antitrust Clearance
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Key Takeaways
Allegiant received U.S. antitrust clearance for its planned acquisition of Sun Country Airlines.
The $1.5B deal includes cash and stock, offering SNCY holders shares plus $4.10 per share in cash.
The merger aims to expand routes, boost revenue streams and create a stronger leisure airline.
Allegiant Travel Company (ALGT - Free Report) announced that it has received the U.S. antitrust clearance in relation to its prior announced acquisition deal with Sun Country Airlines (SNCY - Free Report) ). Winning the antitrust clearance marks a major step toward the completion of the deal.
Under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, both Allegiant and Sun Country announced the early termination of the waiting period for Allegiant's proposed acquisition of Sun Country.
The deal still remains subject to other customary closing conditions, which include approval from the U.S. Department of Transportation of an interim exemption application and the approval of the shareholders of each of Allegiant and Sun Country. The deal is now anticipated to be completed in the second or third quarters of 2026.
Allegiant chief executive officer, Gregory C. Anderson, stated, "We are pleased to receive U.S. antitrust clearance from the Department of Justice. We remain confident that this combination will deliver meaningful benefits for our customers, team members and the communities we serve. Together, Allegiant and Sun Country will create a stronger leisure-focused airline, offering a broader network, more travel options and increase long-term value creation for our shareholders."
The deal was initially announced on Jan. 11, 2026, per which Allegiant will purchase Sun Country in a cash and stock transaction at an implied value of $18.89 per Sun Country share. The deal value is estimated to be around $1.5 billion, which includes $0.4 billion of Sun Country's net debt.
Sun Country shareholders will receive 0.1557 shares of ALGT common shares and $4.10 in cash for each Sun Country share owned. This marks a premium of 19.8% over Sun Country's closing share price of $15.77 on Jan. 9, 2026, and 18.8% based on the 30-day volume-weighted average price. On completion, Allegiant shareholders are expected to own about 67% of the combined company on a fully diluted basis, with Sun Country shareholders holding the remaining 33%.
The merger is likely to witness the union of two profitable airlines with solid balance sheets. The merged entity anticipates net adjusted debt to Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent/Restructuring costs (EBITDAR) of less than 3.0x following closure of the deal.
The combined airline's diversified revenue streams, which include its high ancillary revenues and long-term contracts in cargo and charter, are anticipated to offer more strength during economic cycles. The merged body is expected to generate a leisure-focused U.S. airline, widening service to more popular vacation destinations across the United States and internationally, while providing more travelers with access to pocket-friendly air travel.
The combined entity will lead to more than 650 routes, which include 551 Allegiant routes and 105 Sun Country routes. Further, the combined company is likely to generate newroles, more job opportunities and cross-training possibilities.
SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company. SKYW currently carries a Zacks Rank of 2.
SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter). The average beat was 12.75%. The Zacks Consensus Estimate for current-year earnings has been revised upward by 3.16% over the past 60 days. For 2026, SKYW’s earnings are expected to improve 10.34% year over year.
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Allegiant-Sun Country's $1.5B Deal Gains U.S. Antitrust Clearance
Key Takeaways
Allegiant Travel Company (ALGT - Free Report) announced that it has received the U.S. antitrust clearance in relation to its prior announced acquisition deal with Sun Country Airlines (SNCY - Free Report) ). Winning the antitrust clearance marks a major step toward the completion of the deal.
Under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, both Allegiant and Sun Country announced the early termination of the waiting period for Allegiant's proposed acquisition of Sun Country.
The deal still remains subject to other customary closing conditions, which include approval from the U.S. Department of Transportation of an interim exemption application and the approval of the shareholders of each of Allegiant and Sun Country. The deal is now anticipated to be completed in the second or third quarters of 2026.
Allegiant chief executive officer, Gregory C. Anderson, stated, "We are pleased to receive U.S. antitrust clearance from the Department of Justice. We remain confident that this combination will deliver meaningful benefits for our customers, team members and the communities we serve. Together, Allegiant and Sun Country will create a stronger leisure-focused airline, offering a broader network, more travel options and increase long-term value creation for our shareholders."
Allegiant presently sports a Zacks Rank #1 (Strong Buy) and Sun Country carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Deal Details & Benefits
The deal was initially announced on Jan. 11, 2026, per which Allegiant will purchase Sun Country in a cash and stock transaction at an implied value of $18.89 per Sun Country share. The deal value is estimated to be around $1.5 billion, which includes $0.4 billion of Sun Country's net debt.
Sun Country shareholders will receive 0.1557 shares of ALGT common shares and $4.10 in cash for each Sun Country share owned. This marks a premium of 19.8% over Sun Country's closing share price of $15.77 on Jan. 9, 2026, and 18.8% based on the 30-day volume-weighted average price. On completion, Allegiant shareholders are expected to own about 67% of the combined company on a fully diluted basis, with Sun Country shareholders holding the remaining 33%.
The merger is likely to witness the union of two profitable airlines with solid balance sheets. The merged entity anticipates net adjusted debt to Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent/Restructuring costs (EBITDAR) of less than 3.0x following closure of the deal.
The combined airline's diversified revenue streams, which include its high ancillary revenues and long-term contracts in cargo and charter, are anticipated to offer more strength during economic cycles. The merged body is expected to generate a leisure-focused U.S. airline, widening service to more popular vacation destinations across the United States and internationally, while providing more travelers with access to pocket-friendly air travel.
The combined entity will lead to more than 650 routes, which include 551 Allegiant routes and 105 Sun Country routes. Further, the combined company is likely to generate newroles, more job opportunities and cross-training possibilities.
Another Airline Stock to Consider
Investors interested in the Zacks Transportation-Airline industry may also consider SkyWest, Inc. (SKYW - Free Report) ).
SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company. SKYW currently carries a Zacks Rank of 2.
SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter). The average beat was 12.75%. The Zacks Consensus Estimate for current-year earnings has been revised upward by 3.16% over the past 60 days. For 2026, SKYW’s earnings are expected to improve 10.34% year over year.