Subsea cable manufacturing firm Xtera has been acquired by a pair of Italian companies.

Late December saw a joint venture from Prysmian and Fincantieri sign an agreement to acquire Xtera Topco Limited, a UK and US-based leader in turnkey submarine telecom systems, from an affiliate of H.I.G. Capital.

The transaction implies an enterprise value of $65 million, with the deal expected to close in Q1 2026.

Keith Henderson, CEO at Xtera, said: “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.”

Established in 1998, the company supplies both repeatered and unrepeatered optical cable systems, as well as branching units, optical amplifiers and terminals, and other equipment and services. Cable projects the company has been involved with include the NO-UK and TAM-1 systems.

Prysmian owns an 80 percent stake in the acquiring joint venture, with Fincantieri owning the remainder.

With roots back to 1879, Milan-based Prysmian is an Italian company specializing in the production of electrical cable for use in the energy and telecom sectors. It acquired cable manufacturer Channell Commercial Corporation for $950 million last year and partnered with hollow-core optical fiber (HCF) company Relativity Networks. Founded in 1959, Fincantieri is an Italian shipbuilding company.

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.”

Prysmian and Fincantieri have also established a partnership that will include the development of new installation and security services to become a “one-stop shop” for submarine telecom solutions. Fincantieri said its position as an integrator of advanced subsea systems will be strengthened through the partnership and joint venture.

Pierroberto Folgiero, CEO and managing director at Fincantieri, added: “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.”

H.I.G., a private equity and alternative assets investment firm with $72 billion of capital under management, acquired the assets of Xtera Communications in 2017 following the latter’s filing for Chapter 11 and putting itself up for sale the year prior. The investment firm had bid $10 million for the struggling company, which had debts of more than $66 million at the time.

Xtera CEO Henderson added: “H.I.G. has been an exceptional partner to Xtera since establishing the Company in 2017. Through H.I.G.’s investment, we have been able to rebuild a formidable competitor in the subsea telecoms industry, with substantial growth in all of our operations.”

John Harper, managing director at H.I.G. in London, said: “We have proudly supported the Xtera team as they have developed into a leading provider in the fast-growing subsea telecoms market.”