Objective Corporation Ltd (ASX: OCL) shares are having a strong start to the session on Tuesday.
In morning trade, the ASX tech stock is up 3.5% to $19.83.
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Why is this ASX tech stock charging higher?
Investors have been bidding the software company's shares higher today after it signed a deal to acquire Isovist.
According to the release, Isovist is a specialist provider of e-planning software for local government that transforms planning from a static document-based process to a dynamic digital solution.
It notes that it was developed by planners, for planners, and replaces manual plan preparation that is highly tailored and easy to use.
The Isovist solution is based on a powerful plan viewer interface that directly links a site to the relevant elements of the local planning regulations. This helps councils, property owners and developers know the specific planning regulations that apply to a site to make rapid assessments of planned works.
The ASX tech stock notes that Isovist's e-planning products are used by over 50 councils in Australia and New Zealand. Furthermore, the business has demonstrated strong product–market fit, with high customer retention. Its annual recurring revenue (ARR) was NZ$2.2 million at 30 June 2025. Importantly, it has been profitable since 2022.
Management believes that its experienced team brings deep domain expertise in both planning technology and council operations, which supplements Objective's existing capabilities and extends its footprint in the Planning & Building space.
The total consideration for the transaction is an enterprise value of NZ$5 million. This comprises NZ$4.25 million paid upfront and NZ$0.75 million deferred for two years. All consideration will be payable in cash.
'A strategic extension'
The ASX tech stock's CEO, Tony Walls, was pleased with the acquisition. He commented:
This acquisition is a strategic extension of our capabilities in Planning & Building for local government. Isovist brings not only a complementary product suite to Objective, but also shared values of delivering specialised planning solutions to local government that help communities grow and thrive.
We have maintained a disciplined approach to M&A and that will continue. Isovist have a strong product, a profitable business model, and clear alignment to our long-term vision. We're pleased to welcome the whole Isovist team to the Objective family and look forward to what we can achieve together.
Following today's gain, this ASX tech stock is now up almost 70% since this time last year.
