TBO Tek acquires Classic Vacations to expand US luxury travel presence

TBO Tek Limited announced on September 5, 2025, its acquisition of Classic Vacations, a premier B2B2C luxury travel company focused on US travel advisors. This strategic move aims to expand TBO Tek's global reach, particularly into North America. The transaction involves a 100% ownership interest for a purchase consideration of $125 million, subject to closing adjustments. The acquisition will be funded through internal cash reserves and a $70 million term debt. Closure is anticipated in the first week of October 2025.

Classic Vacations boasts a 47-year history with over 135,000 registered advisors and a direct hotel inventory of more than 1,500 properties. For FY24 (Jan-Dec'24), Classic Vacations reported Gross Bookings (GTV) of $475.71 million and Operating EBITDA of $11.2 million. The acquisition is expected to create value by cross-leveraging luxury hotel supply, providing Classic Vacations access to TBO's supply technology and booking engine, and enabling TBO to tap into consortia relationships in the US market.

The company highlighted Classic Vacations' significantly negative working capital cycle, driven by a long average booking window, resulting in approximately $80 million in cash and cash equivalents as of July 2025, representing about 17% of annual GTV. TBO Tek anticipates over $600 million in US business from approximately 12,000 buyers with this acquisition.