Carlyle Aviation Partners has agreed to acquire FLY Leasing in a deal valuing it at $2.36 billion.

Under the terms of the agreement FLY shareholders will receive $17.05 per share in cash, representing a total equity valuation of around $520 million.

The total enterprise value of the transaction is $2.36 billion. The 84 aircraft and seven engines in FLY’s portfolio are on lease to 37 airlines in 22 countries.

The per-share cash consideration represents a premium of 29% to FLY’s closing price on 26 March.

FLY chief executive Colm Barrington states: “This transaction represents strong value for FLY shareholders at a time when airlines are facing an extremely difficult environment and smaller aircraft lessors are disadvantaged in the debt markets. After a thorough review and evaluation of its options, FLY’s board of directors enthusiastically recommends this transaction to its shareholders.”

The Irish lessor was subject to a sale tender process earlier this year.

In approving the proposed merger, the board of directors acted upon the recommendation of a special committee consisting solely of “independent and disinterested directors”, says FLY.

The transaction is set to close in the third quarter of 2021.

Goldman Sachs is acting as financial adviser to FLY. RBC Capital Markets is acting as financial adviser and providing financing to Carlyle Aviation.