Spirit Airlines, Inc. (NYSE:SAVE) shares are trading higher after the company, along with JetBlue Airways Corporation (NASDAQ:JBLU), announced their board of directors have approved a merger agreement for JetBlue to acquire the company for $33.50 per share.
JetBlue will purchase Spirit for $33.50 per share in cash including a $2.50 per share pre-payment upon Spirit’s shareholders' approval of the deal, the press release shares. Spirit will also pay a $0.10 ticking fee per month starting in January 2023 through closing.
The deal has an aggregate fully diluted equity value of $3.8 billion and an adjusted enterprise value of $7.6 billion.
“We look forward to welcoming Spirit’s outstanding Team Members to JetBlue and together creating a customer-centric, fifth-largest carrier in the United States. Spirit and JetBlue will continue to advance our shared goal of disrupting the industry to bring down fares from the Big Four airlines. 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,” JetBlue CEO Robin Hayes shares.
“We are thrilled to unite with JetBlue through our improved agreement to create the most compelling national low-fare challenger to the dominant U.S. carriers, and we look forward to working with JetBlue to complete the transaction. Bringing our two airlines together will be a game changer, and we are confident that JetBlue will deliver opportunities for our Guests and Team Members with JetBlue’s unique blend of low fares and award-winning service,” Spirit CEO Ted Christie shared.
If approved, JetBlue will focus on expanding its service in Fort Lauderdale, Orlando, San Juan, Los Angeles, Detroit, Las Vegas, Dallas, Houston, Chicago, Atlanta and Miami. The press release shared that the larger JetBlue would increase its fleet to 458 aircrafts to serve its 77 million combined customers.
Price Action: Spirit stock is up 3.93% as shares hover at $24.30 during today’s pre-market session.