Tbo Tek shares soar 15% after $125-million acquisition of U.S.-based Classic Vacations

Tbo Tek, a Gurugram-based travel services provider, saw its share price soar by 15% after announcing the acquisition of US-based Classic Vacations from Phoenix-based investment firm, The Najafi Companies, for up to $125 million. The shares reached a new high of ₹1,597 on the National Stock Exchange (NSE) in intraday trade.

The acquisition would bring together the power of TBO’s technology platform and worldwide inventory with Classic Vacation’s vast network of luxury travel advisors and suppliers, as per the statement.

“Classic Vacations is led by a strong team of experts and will continue as an independent brand while leveraging TBO’s technology and distribution capabilities to grow their business," said Gaurav Bhatnagar, Co-founder and Joint Managing Director, Tbo Tek.

Melissa Krueger, CEO of Classic Vacations, said that this agreement would allow their company to bring even more resources, tools, and insider connections to travel advisors. 

Classic Vacations was bought by The Najafi Companies in 2021 from Expedia Group. Jahm Najafi, founder and CEO of The Najafi Companies said this acquisition was the 'natural next step' for its portfolio company Classic Vacations after four years. 

Classic Vacations delivered a revenue of $111 million and an operating EBITDA of $11.2 million in the fiscal year ended December 31, 2024.

Moelis & Company LLC acted as financial adviser and Ballard Spahr LLP acted as legal advisor to Classic Vacations in this transaction. Cooley LLP served as the legal advisors and PWC were the financial and tax advisors for Tbo Tek.