Symbio, a software group specialising in VOIP technology, becomes a coveted acquisition target for Aussie Broadband and Superloop as they aim to diversify their service offerings.
Smaller telecom operators, Aussie Broadband and Superloop, are increasingly encroaching on the market share of Australia's telecom giants.
Their latest move involves acquisition bids for Sydney-based Symbio. Superloop initiated the bidding in August with a valuation of $2.91 per share.
However, Aussie Broadband upped the ante in September, offering $3.15 per share, which values Symbio at $217 million.
Ambitious growth plans
Symbio's core business involves communication platform as a service (CPaaS), routing voice calls for leading tech firms such as Google (NASDAQ:GOOGL), Zoom, and telecom giants like Vodafone (LON:VOD). In addition to CPaaS, the company also provides white label services and bundled communication packages for larger entities.
The acquisition interest highlights the ambitious growth plans of Aussie Broadband and Superloop as they vie for a more significant market share.
Both companies have previously made acquisitions to bolster their portfolios. Aussie Broadband's ongoing due diligence could lead to a firm offer, which Symbio has committed to recommend to its shareholders.
Analysts offer varied opinions on the prospective acquisition's financial implications for Aussie Broadband. Superloop, while currently on the sidelines, could reconsider its position depending on the outcome of the due diligence process.