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Spirit Airlines Locks The Deal With JetBlue, Creating National Low-Fare Challenger

Benzinga · 07/28/2022 08:08
  • JetBlue Airways Corp (NASDAQ:JBLU) has agreed to acquire Spirit Airlines Inc (NYSE:SAVE) for $33.50 per share in cash. The transaction consideration implies an aggregate fully diluted equity value of approximately $3.8 billion and an adjusted enterprise value of $7.6 billion.
  • The purchase price includes a prepayment of $2.50 per share in cash is payable upon Spirit stockholders' approval of the transaction, and a ticking fee of $0.10 per month starting in January 2023 through closing.
  • "This combination is an exciting opportunity to diversify and expand our network, add jobs and new possibilities for Crewmembers, and expand our platform for profitable growth," stated JetBlue CEO Robin Hayes.
  • RelatedWill JetBlue Airways Or Frontier-Spirit Airlines Become America's Largest Budget Airline?
  • "This is a compelling combination that provides meaningful protections for stockholders against an adverse regulatory outcome with a significant cash premium that reflects the continued hard work and dedication of the Spirit Family," commented Mac Gardner, chairman of the board, Spirit.
  • The airlines will carry on independently until the transaction is completed, and there will be no changes to the loyalty programs or customer accounts.
  • Also Read: Spirit Airlines Defers Key Shareholder Vote On Frontier Deal Again
  • After the acquisition, the combined airline will have its headquarters in New York and be led by Robin Hayes.
  • As previously announced, Spirit has terminated its prior merger agreement with Frontier Group Holdings, Inc. (NASDAQ:ULCC). 
  • Price Action: JBLU shares are trading higher by 1.67% at $8.54 and SAVE higher by 4.03% at $25.28 during the premarket session on Thursday.
  • Photo Via Wikimedia Commons