TBO Tek Ltd. , a leading B2B travel distribution platform, has made a significant move to strengthen its foothold in the North American luxury travel market. The company announced the acquisition of Classic Vacations, a nearly 50-year-old luxury travel company, for $125.00 million.

Strategic Expansion into Mature Market

The acquisition provides TBO Tek with a faster entry into the mature and competitive North American travel market, leveraging established synergies. Co-Founder Ankush Nijhawan emphasized the company's intention to integrate Classic Vacations' expertise in luxury travel globally into TBO's core business.

Financial Implications

The deal is expected to be marginally dilutive initially from an EBITDA perspective but accretive at the GMV-to-EBITDA level. Classic Vacations generated over $11.00 million in EBITDA in the trailing 12 months, representing an acquisition multiple of slightly over 11 times EBITDA.

Future Growth Strategy

TBO Tek plans to focus its expansion efforts on Europe, North America, and eventually the Asia Pacific region. The company considers its India and Middle East markets mature. No immediate acquisitions are planned as the company focuses on integrating Classic Vacations into its operations.

Market Response

The market responded positively to the news, with TBO Tek shares closing up 1.63% at ₹1,580.00 on the day of the announcement.

Company Overview

TBO Tek Limited, with its registered office in New Delhi and corporate office in Gurgaon, operates as one of the top four global B2B travel distributors. The company's platform connects travel buyers worldwide with globally distributed travel suppliers, facilitating seamless travel experiences.

Recent Developments

According to the latest investor presentation, TBO Tek has been expanding its global footprint:

• The company operates in 140 source markets
• Processes over 16 million hotel searches (B2A)
• Sells to more than 30,000 destinations
• Serves over 50,000 transacting agents

TBO Tek's growth strategy includes diversifying revenue lines, expanding its platform user base globally, pursuing value-accretive acquisitions, and deploying AI and high-tech innovations for efficiency.

The acquisition of Classic Vacations aligns with TBO Tek's strategic vectors, particularly in expanding into new geographies and growing its buyer segments in the premium outbound travel space, which the company estimates to be a $912.00 billion global market.

As TBO Tek integrates Classic Vacations, the company aims to leverage its modular and scalable proprietary technology platform to enhance its offerings in the luxury travel segment, potentially leading to increased market share and revenue growth in the North American market.

TBO Tek Limited , a leading global B2B travel distribution platform, is set to present its growth story and market position at the Jefferies 4th India Forum. The company's latest investor presentation highlights its strong foothold in the global travel industry and recent financial performance.

Global Reach and Market Position

TBO Tek has solidified its position among the top four global B2B travel distributors, serving over 50,000 transacting agents across 140 source markets. The company's expansive network covers more than 30,000 destinations, showcasing its wide-reaching influence in the travel sector.

Financial Performance

The company's latest quarterly results demonstrate robust growth:

This performance underscores TBO Tek's ability to grow its revenue significantly faster than its GTV, indicating improved monetization of its platform.

Business Model and Global Presence

TBO operates a global travel distribution platform that connects buyers and suppliers across various travel services, including hotels, airlines, and ancillary services. The company has established a strong presence in key markets:

• Europe
• North America
• Asia Pacific (APAC)
• Latin America
• Africa

This global footprint allows TBO to cater to diverse market needs and capitalize on international travel trends.

Recent Milestones and Strategic Moves

TBO Tek has achieved several significant milestones recently:

1. $1 Billion GTV Milestone: The company reached this impressive benchmark, showcasing its growing scale in the travel distribution sector.

2. Public Listing: TBO went public, marking a new chapter in its corporate journey and providing increased visibility to investors.

3. Strategic Acquisitions:

   • Completed the acquisition of Bookabed AG, enhancing its market position.
   • Entered into an agreement to acquire Classic Vacations, signaling continued expansion efforts.

Investor Presentation Highlights

The investor presentation, to be discussed at the Jefferies 4th India Forum, is expected to provide deeper insights into TBO's:

• Market positioning
• Technological capabilities
• Growth strategies
• Financial performance

This presentation underscores TBO Tek's commitment to transparency and engagement with the investment community.

As the travel industry continues to evolve, TBO Tek Limited appears well-positioned to capitalize on global travel trends, leveraging its extensive network and technological prowess to drive future growth.