Photo: SNEHIT PHOTO / Shutterstock.com easyJet has agreed to a recommended acquisition by Apollo-backed Eagle Bidco in a deal valuing the airline at approximately £5.7 billion, marking one of the biggest aviation transactions in Europe in recent years.
Under the agreement, shareholders will receive £7.15 in cash for each easyJet share, representing an 81% premium to the company's unaffected share price and a significant premium over other recent trading benchmarks. The airline's board has unanimously recommended that shareholders approve the transaction.
The acquisition is expected to complete by the end of the first quarter of 2027, subject to shareholder approval, court sanction and regulatory clearances across several jurisdictions.
In addition to the cash offer, eligible shareholders will have the option to exchange their easyJet shares for unlisted rollover shares in Apollo's parent holding company instead of taking cash. However, this alternative is capped, and the easyJet board has not made a recommendation on whether investors should choose it.
Apollo said it has followed easyJet for years and believes the airline has significant growth potential thanks to its strong brand, extensive European network, expanding holidays business and improving operational performance.
The investment firm intends to support further development in areas including revenue management, ancillary services, loyalty programmes, network optimisation and package holidays. Apollo also believes private ownership will give easyJet greater flexibility to invest for long-term growth without the short-term pressures of public markets.
As part of the agreement, Apollo said it intends to maintain easyJet's headquarters in the United Kingdom and preserve its airline operating certificates in the UK, Austria and Switzerland.
The investor also committed to safeguarding employees' existing contractual rights and said it does not plan any material changes to the balance of skills or functions across the airline's workforce.
easyJet Chairman Sir Stephen Hester said the airline has made strong progress in recent years, strengthening its network, improving operational performance and expanding its holidays division.
However, the board concluded that Apollo's offer provides shareholders with immediate and certain value while recognising the company's long-term potential amid ongoing geopolitical and economic uncertainty affecting the aviation sector.
Chief Executive Kenton Jarvis welcomed Apollo's aviation experience, saying the investor would be well positioned to help accelerate easyJet's growth plans while continuing to deliver value for customers.