TBO to Acquire US-Based Classic Vacations in $125 Million Deal

TBO, based in Gurugram, India, announced its agreement to acquire US based Classic Vacations from Phoenix-based investment firm, The Najafi Companies, for an estimated total purchase of up to $125 million.

The acquisition brings together the power of TBO’s first-class technology platform and worldwide inventory with Classic Vacation’s vast network of luxury travel advisors and suppliers. Classic Vacations delivered a revenue of $111 million and an operating EBITDA of $11.2 million in the fiscal year ended Dec. 31, 2024.

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.

“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 Jt. 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.”

”This acquisition continues to further our 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,” said Ankush Nijhawan, co-founder and Jt. managing director of TBO.

“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.”

“Together, we’re strengthening Classic Vacations’ position as the premier luxury partner in the market while extending our reach onto the global stage, reflecting the worldwide footprint of our most important customers and supplier partners,” Krueger added.

This next phase in TBO and Classic Vacations’ operations will leverage the combined strength of both companies — accelerating growth as a global leader of the luxury travel market while ensuring continuity for customers, suppliers, and employees. With global demand for luxury travel projected to expand significantly over the coming decade, this partnership creates a stronger platform to meet evolving traveler expectations and drive sustained value.

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 the legal advisors and PWC were the financial and tax advisors for TBO.