TBO Tek (ISIN: INE673O01025) shares surged over 8% in Monday's trading session, reaching an intraday high of Rs 1,687.00. The rally comes on the heels of the company's recent acquisition of US-based Classic Vacations for $125.00 million, which was completed on September 3. The stock has shown impressive momentum, gaining 20% over recent days.

Acquisition Details

TBO Tek's acquisition of Classic Vacations is seen as a strategic move to expand its footprint in the North American market. Classic Vacations operates as a premium B2B and B2C luxury travel company, boasting a network of 10,000 travel advisors. This acquisition is expected to strengthen TBO Tek's presence in the premium outbound market.

Analyst Perspective

Jefferies, a prominent financial services company, has issued a bullish note on TBO Tek following the acquisition. The firm views this move as part of TBO Tek's roll-up strategy to enhance its market position. Jefferies believes that the acquisition will significantly bolster TBO Tek's presence in the premium outbound travel market.

Market Sentiment

The stock's recent performance has caught the attention of analysts and investors alike. Among the eight analysts tracking the stock:

This overwhelmingly positive sentiment reflects confidence in TBO Tek's growth strategy and market potential.

Technical Indicators

TBO Tek currently trades with a Relative Strength Index (RSI) of 65, indicating that the stock is not in overbought territory despite its recent gains. This suggests that there might still be room for further upside.

Potential Catalysts

Recent changes in Goods and Services Tax (GST) regulations are expected to have a positive impact on TBO Tek's revenue. These changes could potentially lead to increased consumption and travel activity, benefiting companies in the travel sector like TBO Tek.

Conclusion

TBO Tek's strategic acquisition of Classic Vacations, coupled with positive analyst sentiment and favorable market conditions, has contributed to the stock's impressive performance. As the company continues to expand its global footprint and capitalize on potential growth in the travel sector, investors and analysts remain optimistic about its future prospects.

TBO Tek Limited , a leading travel technology company, has announced a significant expansion into the North American luxury travel market with the acquisition of Classic Vacations for $125 million. The deal, expected to close in the first week of October 2025, marks a strategic move for TBO Tek to strengthen its position in the global travel industry.

Acquisition Details

The acquisition of Classic Vacations, a premier B2B2C luxury travel company serving US travel advisors, will be funded through a combination of TBO Tek's internal cash reserves and a $70 million term debt from Standard Chartered Bank. This strategic move will give TBO Tek 100% ownership of Classic Vacations, opening up new opportunities in the lucrative North American travel market.

About Classic Vacations

Classic Vacations has established itself as a key player in the luxury travel sector with:

• Over 135,000 registered advisors
• $475.71 million in gross bookings for FY24
• $11.2 million operating EBITDA in FY24
• Specialization in luxury travel to Hawaii, Mexico, Caribbean Islands, and Europe
• A business model split between FIT (66%) and Groups (34%)

Strategic Implications

The acquisition is set to create significant synergies for both companies:

1. Market Access: TBO Tek gains entry into the North American luxury travel market and valuable consortia relationships.
2. Technology Integration: Classic Vacations will benefit from TBO's advanced technology platform and extensive hotel supply network.
3. Expanded Reach: The combined entity will boast over $600 million in US business from approximately 12,000 buyers.

Financial Structure

According to the investor presentation disclosed by TBO Tek:

• The $125 million purchase consideration is subject to closing adjustments.
• Funding includes internal cash reserves and a $70 million term debt from Standard Chartered Bank.
• The term debt has a 4-year tenor with a 12-month moratorium on principal repayment.

Business Comparison

Looking Ahead

The acquisition of Classic Vacations represents a significant milestone for TBO Tek as it seeks to expand its global footprint. By leveraging Classic Vacations' strong presence in the US luxury travel market and its own technological capabilities, TBO Tek is positioning itself for growth in the high-value luxury travel segment.

As the travel industry continues to evolve, this strategic move by TBO Tek demonstrates the company's commitment to enhancing its service offerings and market presence, potentially setting the stage for further expansion and innovation in the global travel technology sector.