Icelandair Acquires WOW Air
“Icelandair Group has entered into a share purchase agreement to purchase all shares of airline WOW air,” the Icelandic carrier said in a statement.
“WOW Air has in recent years built a strong brand and enjoyed great success in the company’s markets to and from Iceland and across the Atlantic,” Icelandair Group interim president and CEO, Bogi Nils Bogason, said in a statement. “There are many opportunities for synergies with the two companies but they will continue to operate under their own brands and operating approvals.”
WOW Air has been known to sell transatlantic flights from the United States to Europe from as low as $55 round-trip. Icelandair also offers low-cost flights between the United States and Europe and even accommodates long stop-overs in Iceland, allowing you to take advantage of two destinations for the price of one.
In the deal, WOW Air’s shareholders will receive a 5.4% stake in Icelandair. The deal is estimated to be valued between $18 million and $24 million, based on a $455 million valuation of Icelandair. According to Business Insider, WOW Air’s shareholders will not be able to sell any newly received Icelandair stock for six months with half of the shares subject to an additional six-month moratorium.
Source: Business Insider