Spirit Airlines, Frontier Airlines Announce Merger To Create Ultra-low Fare Airline

Spirit Airlines, Inc. (SAVE) and Frontier Group Holdings, Inc. (ULCC), parent company of Frontier Airlines, Inc., announced a merger agreement. Spirit equity holders will receive 1.9126 shares of Frontier plus $2.13 in cash for each existing Spirit share they own. This implies a value of $25.83 per Spirit share. The deal values Spirit at a fully diluted equity value of $2.9 billion, and a transaction value of $6.6 billion. Upon closing, existing Frontier equity holders will own approximately 51.5% and existing Spirit equity holders will own approximately 48.5% of the combined airline. The merger is expected to close in the second half of 2022.