Indigo Partners has signed a preliminary agreement to purchase Wow Air.

The deal comes less than a day after Icelandair Group pulled its own offer to buy the low-cost carrier.

The Icelandic flag-carrier had struck a deal to acquire the struggling carrier on November 5th,

However, Icelandair issued a stock exchange release earlier this week suggesting it would be unlikely that all the conditions in the share purchase agreement would be fulfilled by the shareholders’ meeting today, November 30th.

As such, the purchase was unable to proceed.

Bogi Nils Bogason, chief executive of Icelandair Group, said: “The planned acquisition of Icelandair Group of Wow Air will not go through.

“The board and management of both companies have worked on this project in earnest.

“This conclusion is certainly disappointing.”

The ultra-low-cost carrier currently operates 16 aircraft – one Airbus A320neo, 14 Airbus A321 and A321neos, and one Airbus A330-300.

It now appears Phoenix-based Indigo Partners will step in to complete the deal.

The private equity firm already has stakes in Frontier Airlines, Volaris and Wizz Air, and will complete its due diligence of Wow before the deal can close.

Terms were not disclosed.

“Wow’s management and employees have done a remarkable job in creating a well-regarded, successful ultra-low-cost-carrier brand,” said Bill Franke, managing partner of Indigo, in a statement.

“We have a strategic vision for the airline, and look forward to working with its employees and agents to deliver that vision.”