Allegiant Travel Company (NASDAQ:ALGT) has agreed to acquire all personnel from Sun Country Airlines Holdings (NASDAQ:SNCY), converting SNCY into a wholly owned subsidiary. The merger agreement, detailed in a recent SEC filing, outlines the full integration of SNCY’s workforce.
Merger Terms and Valuation
Sun Country shareholders receive 0.1557 shares of Allegiant common stock plus $4.10 in cash for each share held. This structure applies to outstanding stock options, converting them into Allegiant stock options, while restricted stock units (RSUs) transfer as Allegiant common stock equivalents. Performance stock units (PSUs) vest based on merger conditions.
The deal values Sun Country at approximately $807.6 million. Sun Country reports annual sales exceeding $1.14 billion over the past 12 months, with earnings per share (EPS) at $0.73, a price-to-earnings ratio (PER) of 21.33, and net income of $40.4 million.
Corporate Restructuring and Delisting
The transaction triggers Sun Country’s delisting from Nasdaq. Sun Country secures shareholder approval for the stock delisting and related filings with the Securities and Exchange Commission (SEC), including new stock grants and registration statements. Shareholder votes on the president’s resignation compensation are due within 10 days of proxy issuance.
Post-merger, Sun Country plans to deregister and suspend certain SEC reporting obligations. The deal enhances Allegiant’s market position and financial leverage, with proceeds estimated at around $804 million distributed to investors.
Leadership Transitions
Several Sun Country executives, including Jude Bricker, Jennifer Vogel, and Thomas C. Kennedy, resign from their positions as part of the merger. Bricker, previously Sun Country’s CEO, steps down but will serve as a special advisor to Allegiant’s CEO.
Major Sun Country shareholders endorse the merger. Allegiant shareholders also approve related matters. The agreement, signed on January 11, 2026, positions one of Allegiant’s subsidiaries as Sun Country’s sole owner, streamlining operations amid industry consolidation.
