Alliance between Prysmian and Fincantieri in submarine telecommunications
Agreement for the acquisition from H.I.G. of Xtera, a UK and US-based company in submarine telecommunications systems
Alliance in submarine telecommunications. A joint venture led by Prysmian with Fincantieri has signed an agreement to acquire Xtera, a UK- and US-based company that is a leader in turnkey submarine telecommunications systems. The acquisition of Xtera from an affiliate of H.I.G. Capital, a global alternative investment firm with $72 billion in capital under management, will be carried out through a joint venture owned 80% by Prysmian and 20% by Fincantieri.
The strategy
Prysmian and Fincantieri have also entered into a partnership to develop innovative installation and security services, with the aim of offering a 'one-stop shop' model for complete submarine telecommunications solutions. Thanks to the partnership and the joint venture, Fincantieri's role as a leader in the integration of state-of-the-art submarine systems is further strengthened. "This transaction," said Pierroberto Folgiero, Fincantieri's CEO, "represents a significant step in the implementation of our industrial vision, which identifies the submarine sector as one of the group's strategic pillars, now and in the future. While 'thanks to the acquisition of Xtera,' stressed Raul Gil, Prysmian's Evp transmission, 'we have taken a significant step forward in the submarine telecommunications sector, which is experiencing accelerated growth driven by AI.
The company acquired
Headquartered in London, Xtera is one of five companies in the world capable of building submarine telecommunications networks on a global scale. 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 take place in the first quarter of 2026.Prysmian and Fincantieri are also considering extending the partnership into the submarine power cable sector.
