TBO Tek Limited has announced an agreement to acquire Classic Vacations, a US-based luxury travel company, from The Najafi Companies in a deal valued at up to $125 million. The acquisition strengthens TBO’s position in the premium outbound travel segment, combining its global travel platform with Classic Vacations’ strong brand and network of luxury travel advisors.
Financial Snapshot of Classic Vacations
Founded nearly five decades ago, Classic Vacations generated $111 million in revenue and $11.2 million in operating EBITDA in FY 2024, underlining its robust performance in the high-end travel market.
Strategic Synergies
Through this acquisition, TBO plans to leverage Classic Vacations’ deep-rooted relationships with over 10,000 luxury travel advisors in the U.S. while integrating its own advanced technology and vast global inventory. The companies expect this combination to improve customer experience, strengthen supplier partnerships, and accelerate global growth.
Growing Luxury Travel Demand
The luxury travel market is expected to expand rapidly over the next decade, fueled by shifting consumer preferences and higher spending on premium experiences. By acquiring Classic Vacations, TBO aims to capture a larger share of this growing segment while positioning itself as a global leader in the sector.
Deal Advisors
Classic Vacations, previously acquired by The Najafi Companies in 2021 from Expedia Group, was advised by Moelis & Company LLC (financial) and Ballard Spahr LLP (legal). On TBO’s side, Cooley LLP acted as legal advisor, while PwC supported financial and tax matters.
Leadership Commentary
Commenting on the deal, Gaurav Bhatnagar, Co-founder and Joint Managing Director of TBO Tek, said: – “We’re thrilled to welcome Classic Vacations into the TBO family. With its strong brand and trusted network of travel advisors, Classic Vacations is a natural fit for our vision in the evolving travel industry.”
He added that the company will continue operating as an independent brand, while benefiting from TBO’s technology and distribution network to drive growth.
Summary
TBO Tek will acquire Classic Vacations from The Najafi Companies for $125 million, strengthening its footprint in the luxury travel market. The acquisition combines Classic’s long-standing advisor network and brand value with TBO’s technology-driven platform, positioning the company for global expansion in premium travel. The deal comes as demand for luxury travel continues to rise, offering significant growth opportunities for both firms.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.