After months of speculation, budget airline giant easyJet has officially agreed to a $7.7 billion (£5.7 billion) acquisition by investment firm Apollo Global Management. The board of the airline, guided by Evercore, unanimously backed the all-cash offer, describing it as a fair valuation that provides immediate returns for shareholders. The decision comes shortly after Castlelake, another potential suitor that had previously made five separate bids for the carrier, abruptly withdrew from the competition without providing a specific reason for its exit.

Apollo, a seasoned investor in the aviation sector with stakes in companies like Sun Country Airlines and Aeromexico, intends to leverage its $1.05 trillion portfolio to boost easyJet’s commercial growth, particularly within its expanding holiday division. To navigate strict European Union ownership regulations—which mandate that airlines operating within the bloc must remain under EU control—Apollo has structured the deal so that the family of founder Stelios Haji-Ioannou and other stakeholders will retain a significant interest. With the Haji-Ioannou family publicly supporting the move, the deal marks a major turning point for the airline as it looks to solidify its position amidst ongoing industry challenges.