TBO Tek to acquire US-based Classic Vacations from The Najafi Companies

Mumbai, Sep 3 (PTI) Travel distribution platform TBO Tek on Wednesday said it has signed an agreement to acquire US-based Classic Vacations from Phoenix-based investment firm The Najafi Companies for an estimated up to USD 125 million.

The acquisition of Classic Vacations would help TBO expand its presence in the North American market, TBO Tek said in a statement.

"This acquisition continues to further our strategy to invest in both organic and inorganic growth opportunities. As we start working on integrating Classic Vacations with TBO, we will remain open to similar strategic alliances going forward," said Ankush Nijhorwan, Co-founder and Joint Managing Director, TBO.

Classic Vacations had clocked a revenue of USD 111 million and an operating EBITDA of USD 11.2 million in the financial year ended December 2024, it stated.

This next phase in TBO and Classic Vacations operations will leverage the combined strength of both companies-- accelerating growth as a global leader of the luxury travel market while ensuring continuity for customers, suppliers, and employees, the company said.

"Together, we strengthen Classic Vacations' position as the premier luxury partner in the market while extending our reach onto the global stage, reflecting the worldwide footprint of our most important customers and supplier partners," said Melissa Krueger, CEO of Classic Vacations.

Classic Vacations was bought by The Najati Companies in 2021 from Expedia Group, according to the company.

"This acquisition and partnership is a natural next step for our portfolio company Classic Vacations, and we are happy to have worked successfully with them for the last four years, maximizing the company's strengths and expertise in luxury travel," said Jahm Najafi, Founder and CEO, The Najafi Companies.

Moelis & Company LLC acted as exclusive financial adviser, while Ballard Spahr LLP acted as legal advisor to Classic Vacations in this transaction, the company said, adding Cooley LLP served as the legal advisors and PWC were the financial and tax advisors for TBO. PTI IAS DRR