TBO Tek shares surge 15% as Gurugram firm acquires US-based Classic Vacations for $125 million

TBO Tek’s $125 million deal with Phoenix-based Najafi Companies will bolster its premium outbound travel presence, as Classic Vacations retains its brand while leveraging TBO’s technology and distribution to expand operations through 10,000-plus luxury travel advisors

Shares of travel services provider TBO Tek surged 15 percent in intra-day trade on Wednesday (September 3) after the Gurugram-headquartered company announced plans to acquire Classic Vacations, a US-based luxury travel specialist, for up to $125 million.

The deal, struck with Phoenix-headquartered Najafi Companies, is expected to strengthen TBO’s presence in the premium outbound travel segment. Classic Vacations, which has a network of more than 10,000 luxury travel advisors and suppliers, will continue to operate under its own brand while integrating TBO’s technology and distribution capabilities to expand its reach.

Strategic significance and financial details

TBO co-founders Gaurav Bhatnagar and Ankush Nijhawan said the acquisition marks the company’s entry into the high-end outbound market, complementing Classic Vacations’ nearly five-decade legacy as a B2B luxury brand. Classic Vacations CEO Melissa Krueger welcomed the move, noting that the tie-up would empower advisors with global access and modern technology tools.

Najafi Companies, which bought Classic from Expedia Group in 2021, described the sale as a logical progression for the business. For the fiscal year ending December 2024, Classic Vacations reported revenue of $111 million and operating EBITDA of $11.2 million. The transaction is expected to close in early October 2025 and does not require regulatory approvals.

To fund the acquisition, TBO Tek’s board cleared an inter-corporate loan of over ₹350 crore to its wholly owned subsidiary Tek Travels DMCC for five years. Tek Travels DMCC will also issue a corporate guarantee and letter of comfort to secure $70 million in credit facilities from Standard Chartered Bank. Advisory support for the deal came from Moelis & Company, Cooley LLP, PwC, and Ballard Spahr LLP.

Stock market performance

Following the announcement, TBO Tek’s stock touched an intra-day high of ₹1,591.55, before paring some gains. Despite Wednesday’s rally, the counter remains more than 20 percent below its 52-week peak of ₹2,000 hit in September 2024. The stock had slipped to a 52-week low of ₹985.70 in April 2025 and has fallen 22 percent year-to-date. Over the past twelve months, it has declined 23 percent.

Founded in 2006, TBO Tek operates a global travel distribution network, connecting more than 159,000 travel buyers with over one million suppliers across 100 countries through its technology-driven platform.