British low-cost airline EasyJet confirmed on Thursday that it has agreed to be acquired by U.S. investment firm Apollo in a deal worth £5.7 billion ($7.7 billion), after a rival American bidder withdrew from the contest.
"The boards of directors... are pleased to announce that they have reached agreement on the terms and conditions of a recommended all-cash acquisition," EasyJet said in a statement. The airline operates flights primarily across Europe.
Earlier on Thursday, U.S. investment group Castlelake announced that it would not submit a higher offer for the airline, having previously proposed a bid of just over £5 billion.
Under the UK's takeover rules, both bidders had until Friday to submit revised offers.
"Castlelake confirms that, following careful consideration, it does not intend to make an increased offer for EasyJet," the investment firm said in a statement on Thursday.
EasyJet said last month that Apollo's indicative £5.7 billion proposal offered "a superior outcome" for shareholders compared with Castlelake's bid.
Apollo, which manages more than $1 trillion in assets globally, is no newcomer to the aviation sector. The firm has previously invested in Aeroméxico, Sun Country Airlines, and Atlas Air, and has also provided financing to Air France-KLM and Virgin Atlantic.
As a foreign investor, Apollo cannot acquire 100% ownership of the airline because UK and European Union regulations require airlines to be majority-owned and effectively controlled by UK and/or EU nationals in order to retain their operating rights.
