A Prysmian led joint venture with Fincantieri has signed an agreement to acquire Xtera Topco Limited (“Xtera”), a UK and US-based leader in turnkey submarine telecom systems, enabling Prysmian to become a competitive global player in submarine telecom solutions.
The acquisition of Xtera from an affiliate of H.I.G. Capital, LLC (“H.I.G.”), a leading global alternative investment firm with $72 billion of capital under management, will be carried out through the aforementioned joint venture between Prysmian (80% stake) and Fincantieri (20% stake).
Prysmian and Fincantieri have also established a partnership which includes the development of innovative installation and security services to become a one-stop shop for comprehensive submarine telecom solutions. Fincantieri’s position as a leading integrator of advanced subsea systems is strengthened thanks to the partnership and joint venture.
Submarine telecom cables are major strategic assets and have long-term growth prospects as telecom operators look for new solutions as the adoption of AI is fueling the expansion of data centers and hyperscalers that will require regional and long-haul submarine connections. Security will be central to Prysmian’s offer, as its established assets in monitoring and know-how in installation and cable production will be combined with Fincantieri which confirms its role as a leader for the development of integrated solutions in the underwater domain, focusing on unmanned and security solutions.
Raul Gil, EVP Transmission at Prysmian, said: “Thanks to the acquisition of Xtera we have made a significant leap forward in submarine telecoms, where growth is accelerating driven by the adoption of AI. As the market leader in submarine energy cables, we will now be competitive in delivering regional and long-haul telecom connections globally. Security is a differentiator for our customers, and also thanks to the partnership with Fincantieri, we will offer unique and technologically advanced solutions to the market in a one-stop shop.”
Pierroberto Folgiero, CEO and Managing Director at Fincantieri, commented: “This operation marks a significant step forward in implementing our industrial vision, which positions the underwater sector as one of the Group’s strategic pillars, both now and in the future. By covering every area of this field—including through partnerships with leading companies such as Prysmian—we are strengthening our ability to anticipate global challenges and drive innovation across the entire value chain. In a world where subsea infrastructures are increasingly vital, Fincantieri aims to be a leader and a benchmark for the development of integrated and sustainable solutions.”
Keith Henderson, CEO at Xtera, added: “This investment marks a significant milestone in Xtera’s journey to further strengthen our competitive position in subsea telecom systems. We look forward to partnering with Prysmian and Fincantieri to deliver even greater breadth across the value chain to telecom operators and private subsea system owners.”
Xtera
Headquartered in London, UK, Xtera is one of just five companies able to deliver subsea telecom networks on a global scale. Their long-standing management team, focus on innovation and track record of project delivery positions Xtera as one of the fastest growing providers in the growing submarine telecom market. A specialist in regional and long-haul submarine telecom projects thanks to their proprietary technology, Xtera has industry-leading revenues per FTE with approximately €130 million in revenues and around 60 employees. Xtera also has state-of-the-art R&D facilities in the UK and Texas, USA.
The transaction implies an enterprise value of $65 million.
The acquisition of Xtera remains subject to regulatory approvals. Completion of the transaction is expected to occur in the first quarter of 2026.
One-stop shop for submarine cable solutions
The acquisition of Xtera will complement Prysmian’s leadership in submarine telecom production from its Nordenham (Germany) plant, its in-house acoustic and temperature monitoring solutions, and its world leading fleet of cable installation vessels and know-how. The partnership with Fincantieri will build on the already established relationship in cable installation vessels and will expand to new security-focused underwater services including guard vessels and drones.
Prysmian’s one-stop shop for submarine telecom solutions will be deeply embedded in both Europe and the US, benefiting from a shared culture and supply chain across the two continents.
Prysmian and Fincantieri are also exploring extending the partnership to submarine energy cables.
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