TBO TEK shares rise 2% after $125-million acquisition of Classic Vacations

TBO TEK shares gained 2 per cent on Friday after it completed the acquisition of 100 per cent ownership interest in US-based Classic Vacations for $125 million

Shares of  TBO TEK gained over 2 per cent on Friday after the company completed the acquisition of 100 per cent ownership interest in US-based Classic Vacations for $125 million.

 

The travel-related services company's stock rose as much as 2.48 per cent during the day to ₹1,560.4 per share, the biggest intraday rise since September 30 this year. The stock pared gains to trade 1.8 per cent higher at ₹1,550 apiece, compared to a 0.22 per cent decline in Nifty 50 as of 10:44 AM. 

 

The counter has fallen 10.6 per cent this year, compared to a 5 per cent advance in the benchmark Nifty 50. TBO TEK has a total market capitalisation of ₹16,751.84 crore.  

 

TBO completes $125 mn acquisition of US-based Classic Vacations

The company has completed the acquisition of US-based Classic Vacations from Phoenix-based investment firm The Najafi Companies for $125 million, including closing adjustments. The deal follows a definitive agreement announced on September 2, 2025, according to an exchange filing on Thursday.

 

Classic Vacations will continue to operate as an independent brand under Chief Executive Officer Melissa Krueger, maintaining its five-decade legacy in the US luxury travel market. Backed by TBO’s technology platform, global inventory, and distribution network, Classic is expected to scale faster, expand offerings, and serve its community of over 10,000 travel advisors and their customers, the statement said.

 

The acquisition supports TBO’s strategic vision of becoming one of the largest global travel-tech platforms, strengthening its presence in key outbound travel markets and reinforcing its position in the luxury travel segment, the company said. Effective October 1, 2025, Classic Vacations will operate as a material step-down subsidiary of TBO TEK Ltd.

 

Global brokerage Jefferies, earlier in its report, hiked the target to ₹1,800 from ₹1,625, along with earnings per share (EPS) estimates by 2 to 6 per cent on the back of acquisition benefits. The brokerage believes this marks as the company’s first material acquisition since Jumbonline in Europe (2023), in line with its roll-up strategy of incubating new source markets.

 

The deal, for about $125 million, significantly strengthens TBO’s presence in the premium outbound travel market, particularly in North America, which currently accounts for just 5 per cent of overall gross transaction value (GTV), the brokerage noted.  

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TBO TEK Outlook

TBO in its FY25 annual report said the company is well-positioned to harness the robust expansion of the global travel industry, which is expected to grow at a compound annual growth rate of approximately 8.2 per cent, reaching nearly $2.6 trillion by 2027. 

 

In FY25, the company reported strong results, backed by strategic acquisitions like Jumbonline and a strengthened B2A platform, underscoring the efficacy of our expansion strategy across Asia-Pacific, the Middle East, Africa, and Latin America.