Frontier to Buy Spirit Airlines for $2.9 Billion in Cash, Stock

Frontier Group Holdings Inc. agreed to buy Spirit Airlines Inc. for $2.9 billion in cash and stock, in a deal to unite two growing U.S. low-cost carriers.

Spirit owners will receive 1.9126 Frontier shares and $2.13 in cash for each share they own, according to a statement Monday. The deal values Spirit at $25.83 a share based on closing stock prices Feb. 4.

The combination will bring Spirit into a constellation of low-cost airlines led by William A. Franke, the managing partner of Indigo Partners. The private equity firm owns a majority stake in Frontier, and is the ...