Alaska Air is buying Virgin America for $4 billion

It’s official: Alaska Air is buying Virgin America for about $4 billion.

In a statement Monday, Alaska Air said it will buy Virgin America for $57 per share in cash.

“With an expanded West Coast presence, a larger customer base, and an enhanced platform for growth, Alaska Airlines will be positioned to provide more choices for customers, increase competition and deliver attractive returns to investors,” the statement said.

Virgin America shares surged 32% in pre-market trading.

More to come …

NOW WATCH: EX-UNDERCOVER DEA AGENT: What I did when drug dealers asked me to try the product

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.