Easyjet is set to be taken over by private equity giant Apollo after its main rival pulled out of a long-running bidding war for the budget airline.

Apollo is offering £7.15 in cash for each easyJet share, equivalent to an equity valuation of about $7.7 billion at the exchange rate used in contemporaneous reporting. The airline's board unanimously recommends the transaction, according to easyJet's official hub for the firm offer and related documents.

The airline says a bid from US firm Apollo has trumped a previous potential takeover offer from Castlelake.

The familiar orange airline is preparing to enter a new era. EasyJet has agreed to a £5.7 billion takeover by US private equity giant Apollo Global Management, bringing one of Britain’s best-known aviation brands under private ownership and raising a bigger question: what happens when private equity takes control of a low-cost airline built on scale,

Jet’s board recommends Apollo’s £7.15-per-share cash offer after Castlelake withdrew from the takeover contest.

Apollo has moved one step closer to taking control of Easyjet, after rival bidder Castlelake pulled out of the bidding process.

British budget airline EasyJet says it's reached an agreement in principle for a £5.7-billion ($7.7-billion) takeover by U.S. private equity firm Apollo, topping a rival offer from fellow American private equity investor Castlelake​.

The Luton, England-based budget airline said the UK Takeover Panel has approved moving Castlelake's "put up or shut up" deadline from Monday to 1700 BST on Friday. This aligns the deadlines for both Castlelake and Apollo to announce their intentions to make firm offers for easyJet.