Superloop offers $243 million to acquire UCaaS vendor Symbio

Telco Superloop has offered to acquire Australian unified communications as a service (UCaaS) vendor Symbio for $243 million.

Superloop submitted a non-binding indicative proposal to acquire the fellow ASX-listed Symbio through a scheme of arrangement valuing the latter at $2.85 per share.

The company added its board is confident that the combination of the firms would create “significant” value for shareholders in the near-term through the realisation of significant cost synergies and into the future from an enhanced, sustainable growth outlook.

“The proposal that Superloop has made to potentially acquire Symbio represents an excellent proposition for all stakeholders and the combination of Superloop and Symbio would create a strong and attractive telecommunications business,” Superloop chief executive and managing director Paul Tyler said.

“Superloop and Symbio currently have an excellent working relationship, with Symbio being one of Superloop’s largest wholesale clients, and the combination of the two businesses would be highly accretive.”

Superloop’s board said the merger would help create a larger and more complete telco, deliver greater channel depth and deeper product capability, and create a business with an attractive balance of revenue and profit contributions with an increased exposure to the wholesale and business segments.

The board also said the merger would also improve operating efficiency through “significant” cost synergies, deliver significant earnings per share, position the combined company for index inclusion and investment from a wider range of investors, and provide Symbio shareholders with potential upside by receiving Superloop shares.

The proposal is subject to conditions like the completion of confirmatory due diligence, the negotiation and execution of customary transaction documentation and a unanimous Symbio board recommendation.

Superloop also revealed its upgraded earnings guidance for the 2023 financial year, expecting to report underlying EBITDA of $37 million, above the top end of its guidance range of $33 million to $36 million announced at Superloop’s AGM on 11 October 2022.

Tyler said Superloop has experienced stronger than anticipated organic trading performance in the second half of the year with all three trading segments performing ahead of expectations. 

“We are very pleased with the performance of the business and the financial outcomes that are demonstrating the continuing success of Superloop’s turnaround," he added.