May 3, 2005–(LAS VEGAS, NV) – ComVest Investment Partners (“ComVest”) announced today the recent completion of private equity financing in Allegiant Travel, LLC (“Allegiant”) which provides the Company with $39.5 million of capital, jointly funded by private equity firm ComVest Investment Partners (“Comvest”), Irelandia II and Maurice J. Gallagher, the Company’s CEO and largest shareholder.
“This investment speaks volumes as to the strength of our business model, especially in today’s industry,” Maurice J. Gallagher, Allegiant’s president and CEO, said. “We had many options and quality investors interested in our success. ComVest and Irelandia II provide not only capital, but access to individuals with extensive backgrounds in our sector as well as capital markets in general. We are pleased to be associated with these solid organizations.”
The Las Vegas-based travel company, that wholly owns and operates both Allegiant Air, a low-cost carrier, and Allegiant Vacations, a leading Las Vegas tour operator, explained the funds will be utilized to provide added balance sheet strength and working capital to support the company’s expansion. During the past three years, Allegiant has experienced excellent growth in a difficult industry environment using a strategic model developed under the direction of Maurice J. Gallagher, Jr.
An airline industry veteran and among the few successful modern day airline entrepreneurs, Mr. Gallagher took primary ownership and leadership of Allegiant in June 2001. Mr. Gallagher was also a founder of ValuJet, Inc. (predecessor to AirTran Airways, NYSE – AAI) and WestAir Holdings.
“We are excited to lead the investment in Allegiant’s financing,” said Robert L Priddy, Managing Partner of ComVest. Priddy was also a founding partner of ValuJet, Inc. in 1993. “Maury has put together an excellent management team. They have developed an innovative, successful model for leisure travel, packaging traditional air service with hotels, cars and other attractions from secondary markets to Las Vegas and Orlando.” continued Priddy.
Raymond James served as financial advisor to Allegiant in this transaction.
About Allegiant Travel, LLC
Allegiant Travel, LLC (Allegiant) provides comprehensive leisure travel experiences, utilizing its all-jet, low-fare, low-cost passenger airline, Allegiant Air, LLC. Through its Allegiant Vacations subsidiary (division), the Company maintains significant hotel partnerships in both Las Vegas, NV and Orlando, FL. Combined with Allegiant Air, the Company delivers innovative and affordable packaged vacation experiences to world-class destinations – currently Las Vegas, NV and Orlando, FL. Allegiant Air currently provides nonstop scheduled service from 17 U.S. markets to the Las Vegas destination. Beginning May 26, 2005, Allegiant will begin scheduled service from four U.S. markets to Orlando. In addition to its scheduled service, the airline also operates charter service throughout the U.S., Mexico and Canada. The carrier’s charter customers include Harrah’s Entertainment, Apple Vacations, U.S. Forest Service, collegiate athletic organizations, film production companies and corporations. Allegiant Air’s fleet includes 13 MD80 series jet aircraft, all fitted with comfortable leather seats and spacious overhead luggage bins. Founded in 1997 as an airline, Allegiant is headquartered in Las Vegas, NV. Additional information and reservations are available at www.allegiantair.com and through the company’s reservations line 1-800-432-3810.
About ComVest Investment Partners
ComVest Investment Partners is a private equity firm focused on restructuring and investing in growth businesses. The firm has a diversified industry focus that includes Information Technology, Healthcare, Aerospace and Defense, Natural Resources, Consumer Packaged Goods, and Telecommunications. Since its founding in 1988, ComVest has raised and invested more than $1.4 billion of capital. ComVest currently manages three investment portfolios totaling over $850 million in assets and has offices in New York City and West Palm Beach, Florida.
For additional information, please visit www.comvest.com or contact:
Daniel K. Nenadovic
Vice President-Principal Investments
ComVest Investment Partners
Tel: (561) 868-6069