Synopsis:
TBO Tek Limited is acquiring US-based Classic Vacations from The Najafi Companies for up to $125 million , marking a major step in its expansion into the premium outbound travel market.
A small-cap company that operates multiple online platforms and offers global travel bookings through airlines, hotels, is in the spotlight after announcing a strategic partnership with the U.S.-based company.
With the market capitalization of Rs. 16,820.25 crore, the shares of TBO Tek Limited trading at Rs. 1,546.50, up by 11.90 percent from its previous day’s close price of Rs. 1,382.50 per equity share, and it has reached an intraday high of Rs. 1,597, up by 15.52 percent from its previous close.
What’s the News?
TBO LTD, a Gurugram-based travel technology company, has agreed to acquire US-based Classic Vacations from The Najafi Companies for up to $125 million. The agreement brings together TBO’s global tech platform and inventory with Classic Vacations’ extensive luxury travel advisor and supplier network.
As on December 31, 2024, Classic Vacations generated approximately $111 million in revenue and $11.2 million in operating EBITDA. The acquisition furthers TBO’s strategic expansion into the premium outbound travel market by leveraging Classic’s strong B2B brand, elite advisor network, and nearly 50 years of industry recognition.
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Management View
According to Gaurav Bhatnagar, TBO’s co-founder and Joint Managing Director, Classic Vacations’ proven track record of providing exceptional services to over 10,000 U.S. travel advisors and their clients makes it an ideal fit for TBO’s vision in the evolving travel industry.
He added that Classic Vacations, led by an experienced team, will continue to operate independently while leveraging TBO’s technology and distribution strengths to drive growth.
According to Ankush Nijhawan, TBO’s co-founder and Joint Managing Director, this acquisition is aligned with TBO’s strategy of pursuing both organic and inorganic expansion opportunities. He added that as the company integrates Classic Vacations, it will continue to look into similar strategic alliances in the future.
According to Melissa Krueger, CEO of Classic Vacations, joining TBO represents an exciting new phase because TBO’s advanced, tech-focused solutions will provide travel advisors with unprecedented tools, resources, and connections in the wholesale market.
She added that this collaboration will strengthen Classic Vacations position as a leading luxury travel partner while expanding its global reach to better serve its key customers and suppliers.
According to Jahm Najafi, founder and CEO of The Najafi Companies, this acquisition is a natural progression for Classic Vacations, following four years of successfully enhancing its strengths and expertise in luxury travel.
He stated that Classic, with a strong track record of delivering value to partners and travelers, is well-positioned to continue leading the industry and building on its performance legacy in the coming years.
About the Company
TBO Tek Ltd
TBO, founded in 2006, is a major global travel distribution platform that uses technology to simplify travel buying and selling for partners around the world. It connects over 159,000 travel buyers with over 1 million suppliers and operates on a global scale in over 100 countries.
The company reported revenue of Rs. 511 crore in Q1FY26, up 22.2 percent YoY from Rs. 418 crore and 14.6 percent QoQ from Rs. 446 crore, while profit stood at Rs. 63 crore, growing 3.3 percent YoY from Rs. 61 crore and 6.8 percent QoQ from Rs. 59 crore, indicating steady top-line and bottom-line growth across both yearly and sequential comparisons.
Written by Akshay Sanghavi
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