Allegiant to Buy Sun Country in Deal Valued at $1.5 Billion (4)

Allegiant Travel Co. agreed to buy Sun Country Airlines Holdings Inc. in a $1.5 billion cash-and-stock transaction, further driving consolidation in the US airline industry amid intensifying competition.

Sun Country’s shareholders will receive 0.1557 shares of Allegiant common stock and $4.10 in cash per Sun Country share, the companies said Sunday. The offer is about 20% above Sun Country’s closing share price Friday, according to a release. Shares in Sun Country rose as much as 18% to $18.54 in premarket trading Monday, while Allegiant was little changed.

The combined entity will provide more than 650 routes, including 18 international destinations ...