A joint venture led by Prysmian, in partnership with Fincantieri, has signed an agreement to acquire Xtera. The UK and US-based company specialises in turnkey submarine telecom systems.
Prysmian will hold an 80 per cent stake in the venture, while Fincantieri will maintain a 20 per cent interest. The acquisition from an affiliate of HIG Capital implies an enterprise value of $65 million.
The transaction remains subject to regulatory approval and is expected to conclude in the first quarter of 2026. Fincantieri stated this move allows Prysmian to expand its presence in the global submarine telecom market.
The partnership includes the development of installation and security services for subsea infrastructure. Fincantieri intends to focus on the development of integrated solutions, including unmanned and security systems.
It added that submarine telecom cables are regarded as strategic assets due to the expansion of data centres, and the adoption of artificial intelligence is expected to increase demand for regional and long-haul connections.
Xtera reported revenues of about €130 million and has a workforce of around 60. It operates research and development facilities in the UK and Texas, and the acquisition is expected to complement Prysmian’s existing production facility in Nordenham, Germany.
The two companies are also exploring the possibility of extending their partnership to include submarine energy cables.
Future services may include the use of guard vessels and drones for cable security.