Travel distribution platform TBO Tek Limited is set to make one of its biggest global moves yet. 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. The transaction is expected to close in the first week of October 2025, subject to customary approvals. Founded in 2005, Classic Vacations is a strong player in the US luxury tours and travel segment. With $111 million in net sales in 2024, it boasts deep ties with premium travel suppliers, US consortia, and high-value travel advisors. Post-acquisition, the company will become a wholly owned subsidiary of TBO LLC and a material step-down subsidiary of TBO Tek. To fund the acquisition, TBO Tek will extend an inter-corporate loan of ₹350 crore ($40 million) to its wholly owned subsidiary Tek Travels DMCC. Alongside, it has approved a corporate guarantee and letter of comfort to back $70 million in credit facilities from Standard Chartered Bank for TBO LLC. The acquisition is part of TBO Tek’s global expansion strategy, with a clear focus on building a stronger presence in the US luxury travel market. The timing is also crucial that TBO Tek has been delivering steady growth, with Q1 FY26 revenue rising 22% year-on-year to ₹511 crore and profits inching up 3% to ₹63 crore.
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