Aussie Broadband is buying Symbio in a $262 million deal.

The major Australian telecommunications provider is set to expand its operations significantly with the acquisition of software company Symbio.

The move positions Aussie Broadband as Australia's fourth-largest internet provider.

While residential services, such as broadband connections, will continue to account for half of the company's revenue, the acquisition is expected to enhance their white-label and wholesale capabilities. 

Reports say Aussie Broadband's wholesale division currently contributes around 13 per cent of its annual group revenue.

Phillip Britt, Managing Director and co-founder of Aussie Broadband, says there is potential for broader white-label services targeted at smaller companies, as well as Symbio's expertise in hosting phone services for larger enterprises and government sectors.

Symbio's technology allows voice calls over the internet and provides a large pool of phone numbers for use in video conferencing applications like Zoom and Microsoft Teams.

Aussie Broadband previously acquired Over the Wire, a smaller voice business.

The deal also includes the review of Symbio's Asian strategy, which includes businesses in Singapore and Malaysia with plans to enter Taiwan in the next 12 months.

Symbio's board unanimously recommended Aussie Broadband's takeover offer, provided it is found to be in the best interests of shareholders by an independent expert and no higher offers emerge. 

A $2.6 million break fee is included in the agreement, payable to Aussie Broadband.

Under the terms of the deal, shareholders accepting the offer will receive $2.26 in cash per share and 0.192 of Aussie Broadband shares for every Symbio share held.

Aussie Broadband intends to finance the cash portion of the acquisition using new debt facilities, including a $220 million revolving cash facility, a $160 million acquisition facility, a $30 million bridging facility, and a $25 million working capital facility. 

Additionally, 17 million new shares will be issued to distribute to Symbio shareholders.

A scheme meeting is scheduled for early February, and Aussie Broadband plans to run Symbio as a standalone business with no immediate staffing changes.