An improvement in the alkylation of olefins with isoalkanes in the presence of sulfuric acid wherein the sulfuric acid is removed from the product by a mechanical coalescer means prior to fractionation. No water wash or caustic treatment is required. Any sulfonates or sulfonic esters are removed by hydrodesulfurization or decomposition catalyst in a separate reactor or in either the deisobutanizer (DIB) or debutanizer (DB) column.