MUMBAI: Travel distribution platform TBO Tek on Wednesday announced that it has signed an agreement to acquire US-based Classic Vacations from Phoenix-based investment firm The Najafi Companies for an estimated amount of up to USD 125 million.
The acquisition is aimed at helping TBO Tek strengthen its presence in the North American market, the company said in a statement.
“This acquisition aligns with our strategy to pursue both organic and inorganic growth opportunities. As we begin integrating Classic Vacations with TBO, we remain open to similar strategic partnerships in the future,” said Ankush Nijhorwan, Co-founder and Joint Managing Director of TBO.
For the financial year ending December 2024, Classic Vacations reported revenue of USD 111 million and an operating EBITDA of USD 11.2 million, the statement added.
The combined operations of TBO and Classic Vacations are expected to leverage the strengths of both companies, accelerating growth in the luxury travel segment while ensuring continuity for customers, suppliers, and employees.
“Together, we strengthen Classic Vacations’ position as a leading luxury travel partner while expanding our reach globally, reflecting the international footprint of our key customers and supplier partners,” said Melissa Krueger, CEO of Classic Vacations.
Classic Vacations was acquired by The Najafi Companies in 2021 from Expedia Group, according to the company.
“This acquisition represents a natural next step for our portfolio company Classic Vacations. We are proud of our collaboration over the past four years, helping maximize its strengths and expertise in luxury travel,” said Jahm Najafi, Founder and CEO of The Najafi Companies.
Moelis & Company LLC served as exclusive financial adviser, while Ballard Spahr LLP acted as legal advisor to Classic Vacations. Cooley LLP provided legal counsel and PwC acted as financial and tax advisors to TBO.
