An joint venture led by Prysmian, in partnership with Fincantieri, signed the agreement for theacquisition of Xtera, a group active between the United Kingdom and the United States and specialized in "turnkey" solutions for underwater telecommunicationsThe transaction represents a strategic turning point for Prysmian, which consolidates its role as a global player in one of the most dynamic segments of digital infrastructure.
The acquisition will be carried out through the joint venture owned 80% by Prysmian and 20% by Fincantieri, With the divestiture by an affiliate of HIG Capital, an international private equity operator with approximately $72 billion in assets under management.
The transaction values Xtera at an enterprise value of $65 million. Completion of the transaction remains subject to customary regulatory approvals, with the closing expected in the first quarter of 2026.
Who is Xtera
Headquartered in London, Xtera is one of only five companies in the world able to to build global-scale submarine telecommunications networksA positioning built thanks to a highly experienced management team, a strong drive for innovation and a solid track record in the implementation of complex projects.
Specializing in regional and long-distance connections, Xtera leverages a proprietary repeater technology This allows it to stand out in the market. The group has the highest revenue per FTE in the industry, with a turnover of approximately €130 million and a workforce of approximately 60. To support its operations, it has advanced research and development facilities in the United Kingdom and Texas, USA.
The entry of Xtera will complete the Prysmian's leadership in the production of submarine cables for telecommunications, already concentrated at the Nordenham plant in Germany. This industrial base is complemented by proprietary acoustic and temperature monitoring solutions, a global fleet of cable-laying vessels, and consolidated expertise across the entire value chain.
Industrial partnership between Prysmian and Fincantieri
In addition to the acquisition, Prysmian and Fincantieri have started a industrial partnership focused on the development of advanced installation and security servicesThe goal is to offer the market a “one-stop shop” model capable of covering the entire submarine telecommunications value chain.
Prysmian's expertise in cable production, installation, and monitoring complements Fincantieri's experience in developing advanced submarine solutions, including unmanned and safety-related solutions. This strengthening consolidates Fincantieri's role as a next-generation submarine systems integrator.
The two companies are also evaluating a further extension of their collaboration into the submarine energy cables sector.
Strategic assets in the AI era
Underwater telecommunications links are now critical infrastructure. The growth of artificial intelligence, the expansion of data centers, and hyperscalers are pushing telecom operators to look for new suppliers capable of ensuring reliability, safety and global execution capability.
In this scenario, the safety becomes a distinctive element of the offerAnd it is precisely in this area that the new alliance aims to make a difference, combining industrial capabilities and technological know-how in a market with solid long-term growth prospects.
“With the acquisition of Xtera, we have made a significant step forward in the submarine telecommunications sector, which is experiencing accelerated growth driven by AI,” commented Raul Gil, EVP Transmission at Prysmian. “To complete our offering as a leader in the submarine energy cables market, we will now be even more competitive in ensuring regional and long-distance telecom connections on a global scale. Security represents a distinctive element for our customers and, also thanks to this partnership with Fincantieri, we will be able to offer the market unique and technologically advanced solutions, according to a one-stop shop model."
From the Fincantieri side, Pier Roberto Folgiero speaks of a key element in the group's industrial vision. “This operation represents a significant step in the implementation of our industrial vision, which identifies the submarine sector as one of the strategic pillars of the Group, today and in the future. Covering every aspect of this sector – also through partnerships with leading companies like Prysmian – Let's strengthen our capacity to anticipate global challenges and drive innovation along the entire value chain. In a world where subsea infrastructure is increasingly crucial, Fincantieri aims to be a leader and a point of reference in the development of integrated and sustainable solutions.”
Xtera also looks to the future with optimism. The CEO Keith Henderson He called the transaction "an important milestone" in strengthening the company's competitiveness and expanding the integration of its offerings to telecom operators and private owners of submarine systems. "We are thrilled to collaborate with Prysmian and Fincantieri to offer even greater integration across the entire value chain to telecom operators and private owners of submarine systems."
