Pakistan, Jan. 12 -- Low-cost carrier Allegiant Air announced on Sunday that it will acquire Sun Country Airlines in a deal valued at approximately $1.5 billion, including debt. The acquisition is set to significantly expand the combined airline's network across the United States and select international routes.

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Under the terms of the agreement, Sun Country shareholders will receive 0.1557 Allegiant shares plus $4.10 in cash for each share. The deal values Sun Country stock at $18.89 per share, representing a 19.8% premium over its Friday closing price of $15.77. Allegiant and Sun Country shareholders will own roughly 67% and 33% of th...