Air Canada and Transat have concluded a definitive arrangement agreement that provides for flag-carrier’s acquisition of all issued and outstanding shares in the private carrier.

Under the terms of the binding agreement, unanimously approved by the board of directors of Transat, Air Canada will acquire all outstanding shares of Transat for $13 per share.

The value of the all-cash transaction is approximately $520 million.

“We are delighted to have reached this definitive agreement to combine Transat with Air Canada to achieve the best possible outcome for all stakeholders.

“For shareholders of Transat and Air Canada, this combination delivers excellent value, while also providing increased job security for both companies’ employees through greater growth prospects.

“Air Canada intends to preserve the Transat and Air Transat brands and maintain the Transat head office and its key functions in Montreal,” said Calin Rovinescu, president and chief executive at Air Canada.

The transaction remains subject to regulatory and shareholder approvals and other closing conditions usual in this type of transaction.

If such approvals are obtained and conditions are met, the transaction is expected to be completed in early 2020.

“We are very pleased to join forces with such a successful player in our industry.

“The combination with Air Canada will give Transat new perspectives of growth, with the support of a strong network offering many options for connecting traffic.

“This fully-funded cash transaction is the ideal platform for Transat’s presence and jobs in Montreal, and therefore represents the best option for all our stakeholders: employees, suppliers, partners and shareholders,” said Jean-Marc Eustache, president and chief executive of Transat.

“For our clients, it will offer even more choices and possibilities.

“For now, they can continue booking their flights and packages with complete confidence, as all bookings will be honoured before and after the closing of the transaction.”