Australian telecommunications company Aussie Broadband has extended a non-binding conditional offer to acquire unified communications-as-a-service (UCaaS) provider Symbio. The proposed acquisition values Symbio at approximately $271 million, surpassing a previous offer from Superloop, which initially valued the company at $243 million and was raised to $250 million last week.
Aussie Broadband’s Offer
Aussie Broadband’s offer for Symbio includes a higher monetary value and a more significant cash component than Superloop’s bid. However, the acquisition remains conditional, pending due diligence and a unanimous recommendation from Symbio’s board.
Exclusivity Period and Due Diligence
Both Aussie Broadband and Symbio have agreed to a three-week “exclusivity” period to conduct due diligence. It’s essential to note that discussions between the two companies are ongoing, and there is no certainty that a transaction will occur.
Funding and Superior Offer
Aussie Broadband plans to fund the cash portion of the transaction through a new debt facility. Symbio’s board and advisors have deemed Aussie Broadband’s offer “superior” to Superloop’s. As part of the exclusivity agreement, Symbio will terminate discussions with other third parties regarding competing proposals.
Impact on Superloop’s Offer
The exclusivity agreement with Aussie Broadband will prevent Symbio from meeting certain timelines specified in Superloop’s “best and final offer.”
Aussie Broadband’s conditional bid for Symbio, valuing the UCaaS provider at $271 million, represents a significant development in the telecommunications sector. The outcome of due diligence and subsequent negotiations will determine whether the acquisition proceeds.