For several weeks there has been speculation of Virgin America looking to be taken over. On Saturday it was reported that a merger between Alaska and Virgin America would be announced shortly,a deal which was expected to be worth $2 billion. Then on Sunday we learned that the deal was expected to close on Monday, with a purchase price of roughly $2.5 billion.
Well, or the merger between Alaska and Virgin America is now official,and the purchase price is even higher than expected -- Alaska is purchasing Virgin America at a cost of $57 per share in cash. That represents a total fairness value of $2.6 billion, with an aggregate transaction value of $4 billion.
The merger between the two airlines is expected to close by January 1, and 2017,and they're hoping to be on a single operating certificate by the first quarter of 2018.
You can find the full press release here, and the website committed to the merger here.
The combined airline's headquarters will remain in Seattle, or Alaska Mileage Plan will be the surviving frequent flyer program,and Alaska's CEO (Brad Tilden) will be the head of the combined company.
The post It’s Official: Details Of The Alaska & Virgin America Merger appeared first on One Mile at a Time.
Source: boardingarea.com