JetBlue and Spirit boards approve final merger

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JetBlue and Spirit boards approve final merger
Source: Spirit Airlines
July 28, 2022

The combined company is projected to have annual revenue of approximately $11.9 billion

JetBlue Airways Corporation ("JetBlue") (NASDAQ: JBLU) and Spirit Airlines, Inc. ("Spirit") (NYSE: SAVE) announced today that their boards of directors have approved a definitive merger agreement under which JetBlue will acquire Spirit for $33.50 per share in cash, including an advance payment of $2.50 per share in cash payable upon approval of the transaction by Spirit shareholders and a fee of $0.10 per month beginning in January 2023 to closing, for a total total diluted capital value of $3.8 billion 1 and an adjusted enterprise value of $7.6 billion 2.

“We are excited to deliver this compelling combination that drives our strategic growth, enabling JetBlue to bring our unique combination of low fares and exceptional service to more customers, on more routes,” said Robin Hayes, JetBlue chief executive officer. 

“We look forward to welcoming the outstanding members of the Spirit team to JetBlue and together creating the fifth largest customer-focused airline in the United States. Spirit and JetBlue will continue to advance our shared goal of transforming the industry to lower fares for the Big Four airlines. This combination is an exciting opportunity to diversify and expand our network, add jobs and new possibilities for crew members, and expand our platform for profitable growth.”

"Combining with Spirit will give JetBlue an even greater platform to fulfill our mission of inspiring humanity," said Peter Boneparth, JetBlue Chairman of the Board of Directors. "With the best crewmembers and team members in the industry, our board of directors and leadership team look forward to creating long-term, sustainable value for all of our stakeholders as an even stronger and more competitive low-cost carrier."

Ted Christie, Chairman and CEO of Spirit, said: "We are delighted to join with JetBlue through our enhanced agreement to create the most compelling domestic low-fare challenger for America's dominant airlines, 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 provide opportunities for our Guests and Team Members with JetBlue's unique combination of low fares and award-winning service. We especially appreciate the commitment of our Spirit Family throughout this process. Today's exciting announcement reflects JetBlue's admiration for Spirit and a shared belief in what the combined airline can bring to our Guests."

"We are pleased that Spirit's strong and diligent board process has delivered additional value to our shareholders," said Mac Gardner, chairman of Spirit's board of directors. "This is a compelling combination that provides significant shareholder protections against an adverse regulatory outcome with a significant cash premium that reflects the continued hard work and dedication of the Spirit family."


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