Why is this ASX tech company surging more than 10% today?

Shares in ASX tech company SiteMinder Ltd (ASX: SDR) are charging higher after it announced the launch of a new technology offering.

Easier integration

The hotel commerce platform provider said in a statement to the ASX that it had launched SiteMinder Powered, “enabling, for the first time, selected hospitality technology companies to integrate SiteMinder’s distribution engine directly within their own platforms”.

The company added:

The capability expands how hotels can access SiteMinder’s hotel commerce capabilities at an infrastructure level. While many hotels will continue to use the full SiteMinder platform directly, others will soon be able to access SiteMinder-powered capabilities through the hospitality software systems they already use every day.

SiteMinder said its inaugural partner for the new product was Mews – a hospitality operating system and a long-time partner of SiteMinder.

SiteMinder said regarding the partnership:

Under the new model, Mews will integrate SiteMinder’s distribution engine natively into its platform and make it available to users as ‘Mews Channel Manager – Powered by SiteMinder’. SiteMinder’s Channels Plus, Demand Plus and Dynamic Revenue Plus products will also be included. For hoteliers, the integrated experience has been designed to provide a Mews-native hotel commerce workflow powered by SiteMinder’s distribution engine, which facilitates the movement of rates, availability, inventory, restrictions, reservations and other content across the global hotel demand ecosystem.

SiteMinder Managing Director Sankar Naryan said the new product was a natural evolution of the company’s platform.

He said further:

Over time, we expect more agentic workflows to operate seamlessly across connected hospitality platforms – and, as those workflows become more automated, the infrastructure connecting hotel systems, distribution channels and commerce capabilities becomes more valuable. SiteMinder’s distribution engine has powered hotel commerce for twenty years and today moves over 300 million room nights annually through one of the world’s largest hotel demand ecosystems. Through SiteMinder Powered, we are expanding how that infrastructure is delivered across the hospitality ecosystem, starting with Mews.

Shares piling on the gains

SiteMinder shares were 11.3% higher at $3.36 on the news on Thursday morning. The shares have traded in a wide range over the past 12 months – as high as $7.96 and as low as $2.60.

RBC Capital Markets said in a note to their clients that the new development was neutral for the share price outlook. The broker has a price target of $7 on SiteMinder shares.

RBC said it was positive that Mews had chosen to partner with SiteMinder, and Mews would be incentivised to upsell SiteMinder products under the arrangement.  

SiteMinder is valued at $854.9 million.

The post Why is this ASX tech company surging more than 10% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.