Symbio Holdings Limited is a telecommunications software and infrastructure provider focused on enabling next-generation voice communications for service providers in Australia and the Asia-Pacific. The company delivers carrier-grade Voice over IP (VoIP), messaging, and number management services through its Software as a Service (SaaS) platform.
Symbio is also well known for its innovation in cloud communications and plays a critical role in underpinning the digital transformation of voice networks across the region.
Why did we invest?
Recurring Revenue & Infrastructure Ownership: Symbio generates the majority of its revenue from recurring service and infrastructure fees. Its proprietary national voice network and software stack give it a defensible competitive position with attractive margins and predictable cash flows.
Industry Tailwinds: The ongoing migration from legacy voice systems to IP-based communications, driven by cloud adoption and enterprise digital transformation, provides long-term demand for Symbio’s services. Regulatory reform and mobile growth also support expansion opportunities.
Strategic Asian Expansion: Symbio has made significant investments in expanding its voice network footprint across Singapore, Malaysia, and other ASEAN markets, laying the groundwork for scalable international growth.
Entry price
Began initially purchasing shares in May 2022 at $4.44 and continued to purchase over time with an average purchase price of $3.02.
Share price over the investment period. Source: S&P Capital IQ.
Why did we sell?
Strategic Takeover by Aussie Broadband (ASX: ABB)
In September 2023, Symbio agreed to a Scheme of Arrangement to be acquired by Aussie Broadband Ltd, a fast-growing challenger telco in Australia.
The transaction valued Symbio shares at $2.26 per share, based on the 30-day VWAP of ABB shares including a cash and scrip component. This represented a 33% premium to its pre-offer price.
With the takeover offer delivering a full and fair valuation, and limited near-term upside due to integration risks, we exited the position and rotated capital into higher conviction opportunities.
Investment outcome
Began initially purchasing shares in May 2022 at $4.44 and continued to purchase over time with an average purchase price of $3.02.
Received circa $0.132 in dividends per share over the investment period.
Sold at an average sale price of $2.92 with the last sale in January 2024 at $2.98 prior to the scheme completing
Loss of 2.1% on our investment (including dividends received) over the period, equating to a money weighted IRR of approximately -2.6%
*Past performance is not indicative of future performance. This is general information only and should not be construed or relied upon as legal, financial or professional advice. Accordingly, the recipient should seek independent professional advice as to the risk, financial, taxation and other implications of investing. Microequities Asset Management Pty Ltd is a Corporate Authorised Representative (CAR 462438) of AFSL 287526.
