ZACKS·2026-03-17 15:55Core Insights - Allegiant Travel Company has received U.S. antitrust clearance for its acquisition of Sun Country Airlines, marking a significant step towards completing the deal [1][10] - The acquisition is valued at approximately $1.5 billion, which includes $0.4 billion of Sun Country's net debt [4][10] Deal Details - The acquisition will involve Sun Country shareholders receiving 0.1557 shares of Allegiant common stock and $4.10 in cash for each share of Sun Country, representing a 19.8% premium over Sun Country's closing share price on January 9, 2026 [5] - The deal is expected to close in the second or third quarters of 2026, pending customary closing conditions including approvals from the U.S. Department of Transportation and shareholders of both companies [2] Strategic Benefits - The merger aims to create a stronger leisure-focused airline, expanding the network and travel options available to customers [3][7] - The combined entity is projected to operate over 650 routes, enhancing service to popular vacation destinations and providing more affordable air travel options [8] Financial Outlook - The merged company anticipates a net adjusted debt to EBITDAR ratio of less than 3.0x post-acquisition, indicating a solid financial position [6] - The merger is expected to generate new job opportunities and cross-training possibilities within the combined workforce [8]