JetBlue has struck a deal to buy Spirit Airlines in a transaction valued at $3.8 billion, the two companies said in a joint statement, laying the foundation for the creation of a low-fare challenger to the dominant big four U.S. airlines.
JetBlue Airways Corporation and Spirit Airlines, Inc., announced on July 28 that their boards have given the green light to a definitive merger agreement, which came hours after Spirit scuttled plans to merge with fellow discount carrier Frontier Airlines.
Under the deal, which is still subject to approval by regulators and Spirit shareholders, JetBlue will buy Spirit for $33.50 per share in cash, including a prepayment of $2.50 per share as soon as Spirit stockholders give the deal their nod of approval….