New Delhi, Sept. 3 -- Listed travel-tech company TBO Tek Ltd, which counts private equity firms General Atlantic and Affirma Capital amongst its investors, has agreed to buy US luxury travel company Classic Vacations.
TBO Tek will acquire Classic Vacations for $125 million (Rs 1,101 crore) in cash from The Najafi Companies, a Phoenix-based private equity firm which currently owns it, according to a stock exchange filing.
The deal will help Gurugram-based TBO Tek expand its presence in the premium outbound travel market by gaining access to US consortia and premium travel supply.
"This acquisition continues to further our strategy to invest in both organic and inorganic growth opportunities," said Ankush Nijhawan, co-founder and joint managing director of TBO. "As we start working on integrating Classic Vacations with TBO, we will remain open to similar strategic alliances going forward."
The deal will be executed through TBO LLC, TBO Tek's US-based step-down subsidiary, which will acquire 100% ownership in Classic Vacations.
Classic Vacations will continue to operate as an independent brand while leveraging TBO's technology and distribution capabilities.
For the deal, TBO Tek will extend a loan of Rs 350 crore ($40 million) to another subsidiary Tek Travels DMCC, which will support TBO LLC, the company said in a statement. Additional capital will come through a credit facility from Standard Chartered Bank, it added.
"Classic Vacations' longstanding delivery of outstanding services has earned the trust of more than 10,000 travel advisors in the US 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, co-founder and joint managing director of TBO.
Classic Vacations delivers premium white-glove service across hotels, flights, experiences, car rentals, and travel protection, specializing in complex bespoke luxury itineraries.
TBO Tek, which listed on the exchanges in May last year, operates online travel platforms TravelBoutiqueOnline.com and TBO.com, connecting over 159,000 travel buyers with 1 million suppliers in more than 100 countries.
Published by HT Digital Content Services with permission from VC Circle.