TBO to acquire US luxury travel firm Classic Vacations for $125 million

Gurugram-based travel distribution company TBO announced its agreement to acquire US-based Classic Vacations from Phoenix-based investment firm The Najafi Companies on Wednesday. TBO said the acquisition was for an estimated $125 million.

The company said the acquisition brings together TBO’s technology platform and worldwide inventory with Classic Vacations’ network of luxury travel advisors and suppliers. Classic Vacations delivered revenue of $111 million and an operating EBITDA of $11.2 million in the fiscal year ended December 31, 2024.

TBO said its expansion into serving the premium outbound travel market aligns strategically with Classic Vacations’ B2B brand and ‘high-value’ advisor network.

“We’re thrilled to bring Classic Vacations into the TBO family – the company’s longstanding delivery of outstanding services has earned the trust of its more than 10,000 travel advisors in the U.S., and their end customers, making them a seamless fit for our vision moving forward in the fast-evolving travel and tourism industry,” said Gaurav Bhatnagar, TBO’s co-founder and joint managing director. “Classic Vacations is led by a strong team of experts and will continue as an independent brand while leveraging TBO’s technology and distribution capabilities to grow their business,” he added.

Ankush Nijhawan, co-founder and joint managing director of TBO, said this acquisition continues to further the company's 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,” he added.

“We’re excited for this next phase in our company’s journey – TBO’s tech-centric solutions are geared fully toward our travel advisor community,” said Melissa Krueger, CEO of Classic Vacations. “TBO connects us to its first-class technology platform, unlike what the wholesale market has ever had access to, allowing us to bring even more resources, tools, and insider connections to our valued travel advisors.”

Classic Vacations was bought by The Najafi Companies in 2021 from Expedia Group.

“This acquisition and partnership is a natural next step for our portfolio company Classic Vacations, and we’re happy to have worked successfully with them for the last four years, maximizing the company’s strengths and expertise in luxury travel. With a proven track record of delivering value to partners and travelers alike, Classic is uniquely positioned to lead the industry forward, building on its legacy of performance for years to come,” said Jahm Najafi, founder and CEO of The Najafi Companies.

Moelis & Company LLC acted as exclusive financial adviser, and Ballard Spahr LLP acted as legal advisor to Classic Vacations in this transaction. Cooley LLP served as legal advisors, and PwC were the financial and tax advisors for TBO.