TBO Tek to acquire US-based Classic Vacations in $125 million deal; Stock in focus

Gurugram-based travel market services provider TBO Tek Ltd. announced in an exchange filing on Wednesday, September 3, that it has signed an agreement to acquire US-based Classic Vacations from Phoenix-based investment firm The Najafi Companies.

The total consideration for the transaction is said to be up to $125 million.

This acquisition will bring together TBO's technology platform and worldwide inventory with Classic Vacation's network of luxury travel advisors and suppliers, TBO Tek said in its filing.

"TBO’s expansion into serving the premium outbound travel market aligns strategically with Classic Vacation’s exclusive B2B brand and elite, high-value advisor network enhanced by its nearly five decades of success and brand recognition," the company statement said.

Classic Vacations delivered revenue of $111 million and operating Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $11.2 million in the fiscal year that ended on December 31, 2024.

The acquisition is likely to be completed by the first week of October 2025, subject to completion of conditions precedent as per the agreement. No regulatory or government approvals are needed for this deal.

In addition to this deal, the board of TBO Tek has also approved the grant of an inter-corporate loan worth over ₹350 core to its wholly-owned subsidiary Tek Travels DMCC for a five-year period. This loan will be used to fund the acquisition of Classic Vacations.

Tek Travels DMCC will be issuing a letter of comfort and a corporate guarantee to secure credit facilities to the tune of $70 million from Standard Chartered Bank for TBO LLC.

Shares of TBO Tek have been underperformers so far in 2025, having declined 22% year-to-date. The stock ended 1% higher at ₹1,376.5. The stock is also down 31% from its 52-week high of ₹2,001.