The operator of online platform, TBO Tek's wholly owned step-down subsidiary will be acquiring US-based Classic Vacations LLC from The Najafi Companies, an investment firm, for up to $125 million, the company said in an exchange filing, sending shares sharply higher by over 12 percent in early trade on September 3.
The acquisition will combine TBO’s technology platform with Classic Vacation’s network of luxury travel advisors and suppliers, the filing said.
Classic Vacations will continue as an independent brand and leverage TBO’s technology and distribution capabilities to grow their business. The acquired company had a revenue of $111 million and operating EBITDA of $11.2 million for the year ended December 2024.
"...the company’s longstanding delivery of outstanding services has earned the trust of its more than 10,000 travel advisors in the US, and their end customers, making them a seamless fit for our vision moving forward in the fast-evolving travel and tourism industry," Gaurav Bhatnagar, TBO’s co-founder and Joint Managing Director said.
TBO Tek has been expanding into the premium outbound travel market, and the acquisition aligns with Classic Vacation’s B2B brand and advisor network, backed by a brand that is nearly five decades old. TBO Tek is an IATA registered ticketing agency and operates online platform travelboutiqueonline.com as well as offers services in B2B segment.
The acquisition will offer tech-centric solutions that are tailored for the travel advisor community in the US. "TBO connects us to its first-class technology platform unlike what the wholesale market has ever had access to," Melissa Krueger, CEO of Classic Vacations said.
Classic Vacations was bought by The Najafi Companies in 2021 from the Expedia Group.
Jahm Najafi, founder and CEO of The Najafi Companies said the acquisition was the 'natural next step' for its portfolio company Classic Vacations.
Moelis & Company acted as the exclusive financial adviser and Ballard Spahr LLP acted as
the legal advisor to Classic Vacations for the transaction. Cooley LLP served as the legal advisors
and PWC were the financial and tax advisors for TBO Tek.
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