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TBO Tek to acquire US-based Classic Vacations for $125 Mn

Entrackr · 2m ago

Medial

TBO Tek to acquire US-based Classic Vacations for $125 Mn Travel distribution platform TBO Tek Limited has announced that its step-down subsidiary TBO LLC will acquire Classic Vacations LLC, a US-based luxury travel company, for up to $125 million in an all-cash deal. According to regulatory filings, TBO Tek will extend an inter-corporate loan of up to Rs 350 crore ($40 million) to its wholly owned subsidiary Tek Travels DMCC, which will support funding for the acquisition. The company has also approved the issuance of a letter of comfort and corporate guarantee in favour of Catalyst Trusteeship, backing credit facilities of up to $70 million from Standard Chartered Bank to TBO LLC. Classic Vacations, founded in 2005, operates in the luxury tours and travel segment across the United States. It reported net sales of $111 million in 2024 and has a strong network of high-value travel advisors, deep ties with US consortia, and access to premium travel supply. TBO Tek said the acquisition is part of its global expansion strategy to strengthen its presence in the US luxury travel market. Post-acquisition, Classic Vacations will become a wholly owned subsidiary of TBO LLC and a material step-down subsidiary of TBO Tek. The deal is expected to close in the first week of October 2025, subject to customary closing conditions. TBO Tek’s operating revenue increased by 22% to Rs 511 crore in Q1 FY26 from Rs 418 crore in Q1 FY25. During the period, it posted a marginal 3% increase in its profits to Rs 63 crore.