TBO Tek shares in focus as Gurugram-based firm to buy Classic Vacations for $125 million

Shares of TBO Tek were in focus on Wednesday after the Gurugram-based company agreed to acquire US-based Classic Vacations from Phoenix-based The Najafi Companies for up to $125 million.

Classic Vacations, a luxury travel services provider, reported revenue of $111 million and operating Ebitda of $11.2 million in 2024. The deal expands TBO’s presence in the premium outbound travel market by combining its technology and global inventory with Classic’s network of over 10,000 travel advisors and suppliers.

TBO Tek said Classic will continue as an independent brand while using TBO’s technology and distribution to scale operations. “This acquisition supports our strategy of both organic and inorganic growth, and we remain open to similar alliances,” said TBO co-founders Gaurav Bhatnagar and Ankush Nijhawan.

Classic Vacations CEO Melissa Krueger said the deal will strengthen its position in the luxury travel segment and provide new technology tools and global reach for its advisor community.

Najafi Companies, which acquired Classic from Expedia Group in 2021, said the sale was the next step for its portfolio company.

Moelis & Company advised Classic Vacations, with Ballard Spahr as legal counsel. Cooley LLP and PwC advised TBO.

“With a proven track record of delivering value to partners and travelers alike, Classic is uniquely positioned to lead the industry forward, building on its legacy of performance for years to come,” said Jahm Najafi, founder and CEO of The Najafi Companies. Moelis & Company LLC acted as exclusive 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.

Founded in 2006, TBO a global travel distribution platform that aims to simplify the buying and selling travel needs of travel partners across the world. It leverages technology to simplify the demands of the complex world of global travel by connecting over 159,000 travel buyers and 1 million travel suppliers at scale of more than 100 countries.