Aussie Broadband makes $258m binding offer for Symbio

The news: Aussie Broadband has confirmed submitting a binding offer to buy out communications software company Symbio in a cash and stock offer worth roughly $258 million.

The numbers: Under the deal, Aussie Broadband would pay between $2.21 in $2.26 in cash and 0.192 Aussie Broadband shares for each Symbio share. Based on Aussie's Friday close of $3.88, this represents a value of between $2.95 and $3.00 per Symbio share, with roughly 86 million on issue and trading at $2.82 at 2:10pm AEDT on Monday. Aussie Broadband shares were trading 0.26% higher at 2:20pm AEDT.

The context: Symbio is an Australian leader in voice over internet protocol (VOIP). Smaller telco competitors Aussie and Superloop are expanding their busineses to compete with market heavyweights Telstra, Optus, TPG and Vocus, the Australian Financial Review reports. The offer is conditional to recommendation by Symbio's board and Aussie intends to withdraw it at 11:59pm AEDT Tuesday night. In a statement, Symbio said it is currently considering the binding offer and discussions are ongoing.