ASX tech stock Serko Ltd (ASX: SKO) is off to the races today.
Shares in the ASX travel technology company closed yesterday trading for $2.46. In morning trade on Tuesday, shares are swapping hands for $3.10 apiece, up 26.0%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.4% at this same time.
Here's what's grabbing investor interest.
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ASX tech stock rockets on acquisition news
The Serko share price is soaring after the ASX tech stock announced plans to expand its existing business in North America.
Via its long-term partnership with global travel tech provider Sabre Corp (NASDAQ: SABR), Serko will acquire Sabre's business travel management solution, GetThere.
Management said this will see Serko become the number two online booking tool provider in North America.
Serko expects its acquisition of the GetThere business for US$12 million to occur around 6 January.
Likely spurring investor interest, the company said its new total income aspiration of $250 million for FY 2030 reflects its current growth trajectory and the assessment of the size of the opportunities ahead.
Commenting on the deal sending the ASX tech stock flying higher today, Serko co-founder and CEO Darrin Grafton said:
As part of the agreement, Serko and Sabre have announced plans to co-develop and co-invest to bring new capabilities to the industry – all with the goal of empowering and delivering greater value to travel management companies, business travel buyers, and, ultimately, business travellers.
Serko delivers 18% half-year income boost
Serko also released its unaudited half-year results for the six months to 30 September today.
The ASX tech stock looks to be getting an added boost after reporting an 18% year on year increase in total income to NZ$42.7 million for the half.
"Total income growth, which accelerated in the second quarter, was underpinned by increased customer acquisition and higher volumes in unmanaged travel. Total income was up 18% on 1H24 and up 23% on 2H24," Grafton noted.
The ASX tech stock still was saddled with a net loss after tax of NZ$5.1 million, but that's a NZ$2.1 million improvement from the prior corresponding half.
The company achieved free cash flow of NZ$1.3 million, an improvement of NZ$5.0 million year on year. Adjusted free cash flow of NZ$2.3 million marked an improvement of NZ$6.0 million from the prior corresponding half.
"This is an important milestone for Serko, reflecting the disciplines in place to achieve material improvements in revenue without growing our underlying total spend," Grafton said.
"These outcomes reflect a sustained shift in how Serko operates and demonstrates our readiness to pursue new growth horizons," he added.
As for the balance sheet, the ASX tech stock had NZ$82 million cash on hand at 30 September.
