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Shares of TBO Tek surged as much as 15.03% to INR 1,591.55 on the BSE during the early trading today after the company announced the acquisition of US-based Classic Vacations from investment firm The Najafi Companies in a deal worth up to $125 Mn yesterday.
The shares were trading 12% higher at INR 1,551.50 apiece at 11:10. The company’s market capitalisation stood at INR 16,847.40 Cr(about $1.9 Bn).
Classic Vacations is a luxury travel wholesaler specialising in personalised vacation packages to premier destinations worldwide. Its offerings are tailored primarily to travel advisors.
The acquisition will expand TBO Tek’s footprint in North America. Classic Vacations reported a revenue of $111 Mn and an operating EBITDA of $11.2 Mn for the fiscal year ended December 31, 2024.
TBO Tek is making the acquisition via its wholly owned step-down subsidiary TBO LLC. TBO Tek also approved a loan of up to INR 350 Cr for its material subsidiary Tek Travels DMCC, which will use the capital to help TBO LLC fund the acquisition.
“TBO’s expansion into serving the premium outbound travel market aligns strategically with Classic Vacation’s exclusive B2B brand and elite, high-value advisor network enhanced by its nearly five decades of success and brand recognition,” TBO Tek said in an exchange filing.
Post the acquisition, Classic Vacations will continue to operate as an independent brand while leveraging TBO’s technology and distribution capabilities to accelerate growth.
Founded in 2006 by Gaurav Bhatnagar and Ankush Nijhawan, TBO Tek provides travel solutions to travel agents and tour operators. It offers white-label solutions, hotel and flight booking APIs and dynamic packages, among others.
TBO Tek has been on an expansion spree for some time now, setting up subsidiaries in countries like Poland, Canary Island, Indonesia, Greece, Australia, among others.
In 2023, it also acquired Spanish tourism company Jumbonline Accommodations & Services for INR 219.6 Cr to further grow its footprint.
On the financial front, TBO Tek’s net profit rose over 3% year-on-year (YoY) and 7% quarter-on-quarter (QoQ) to INR 63 Cr in Q1 FY26. Operating revenue surged 22% YoY and 15% QoQ to INR 511.3 Cr during the quarter.
The company’s shares have risen over 14% since its Q1 disclosures on August 4. However, the stock is down 11.8% on a year-to-date basis.
The post TBO Tek To Acquire Classic Vacations For $125 Mn, Stock Surges 15% appeared first on Inc42 Media.
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