Pierroberto Folgiero (2nd from Left).
Prysmian and Fincantieri to Acquire Xtera: Prysmian and Fincantieri have announced an agreement to acquire Xtera Topco Limited, a UK- and US-based leader in turnkey submarine telecommunications systems, in a move that significantly strengthens their presence in the rapidly growing underwater communications sector. The acquisition will be carried out through a newly established joint venture led by Prysmian, which will hold an 80% stake, alongside Fincantieri with a 20% participation.
The transaction, which values Xtera at an enterprise value of $65 million, is subject to regulatory approvals and is expected to close in the first quarter of 2026. Xtera is being acquired from an affiliate of H.I.G. Capital, a global alternative investment firm with $72 billion in capital under management.
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Creating a Global Player in Underwater Telecommunications
With the acquisition of Xtera, Prysmian positions itself as a globally competitive player in submarine telecommunications, complementing its established leadership in submarine energy solutions. The deal enables Prysmian to extend its capabilities beyond energy transmission into regional and long-distance telecommunications links, an area experiencing accelerated growth driven by the expansion of data centers, hyperscalers, and the adoption of artificial intelligence.
Xtera is one of only five companies worldwide capable of delivering submarine telecommunications networks on a global scale. Headquartered in London, the company has built a strong reputation for innovation and execution, supported by proprietary repeater technology that enables both regional and long-haul submarine projects. Xtera employs around 60 people, generates approximately €130 million in annual revenues, and operates advanced research and development facilities in the UK and Texas, USA.
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A One-Stop Shop for Submarine Cable Solutions
A central element of the transaction is the creation of a “one-stop shop” model for comprehensive submarine telecommunications solutions. Customers will benefit from an integrated offering that spans cable production, system design, installation, monitoring, and safety services.
Xtera’s systems integration expertise will be combined with Prysmian’s capabilities in submarine cable manufacturing, including production at its Nordenham plant in Germany, in-house acoustic and temperature monitoring solutions, and a global fleet of cable-laying vessels. The partnership with Fincantieri further strengthens this model by adding advanced underwater safety and supervision solutions, including unmanned systems and drones.
The collaboration builds on an already established relationship between Prysmian and Fincantieri in the field of cable-laying ships and extends it into new underwater services focused on security and resilience—an increasingly critical concern for submarine telecommunications infrastructure, which is considered a strategic asset of primary importance.
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Italian Navy’s Cavour aircraft carrier built by Fincantieri.
Strategic Importance of Underwater Infrastructure
Submarine telecommunications links underpin global digital connectivity and are seeing renewed investment as telecommunications operators seek new solution providers capable of meeting surging demand. The growth of AI-driven applications and cloud computing is fueling the need for resilient, high-capacity underwater networks connecting continents and regions.
Safety and reliability are central to this growth. Prysmian’s expertise in monitoring, installation, and cable production will be integrated with Fincantieri’s leadership in the development of integrated underwater solutions, with a particular focus on unmanned technologies and safety systems.
Raul Gil, Executive Vice President Transmission at Prysmian, said the acquisition marks a major strategic step for the group. “Thanks to the acquisition of Xtera we have taken a significant step forward in the submarine telecommunications sector, which is experiencing accelerated growth driven by AI. To complete our offering as a market leader in submarine energy cables, we will now be even more competitive in ensuring regional and long-distance remote connections on a global scale. Safety is 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.”
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Pierroberto Folgiero, CEO and Managing Director of Fincantieri, described the deal as a key milestone in the group’s long-term industrial strategy. “This operation represents a significant step in implementing our industrial vision, which identifies the underwater sector as one of the Group’s strategic pillars, today and in the future. By covering every area of this sector – including through partnerships with leading companies such as Prysmian – we strengthen our ability to anticipate global challenges and guide innovation throughout the entire value chain. In a world where underwater infrastructure is increasingly fundamental, Fincantieri aims to be a leader and a reference point in the development of integrated and sustainable solutions.”
Keith Henderson, CEO of Xtera, welcomed the investment as a catalyst for the company’s next phase of growth. “This investment represents an important milestone in Xtera’s path, aimed at further strengthening our competitive position in underwater telecommunications systems. We are excited to collaborate with Prysmian and Fincantieri to provide an even wider integration throughout the entire value chain to remote operators and private owners of underwater systems.”
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The Prysmian–Fincantieri joint venture will be strongly rooted in both Europe and the United States, leveraging a shared industrial culture and an integrated transatlantic supply chain. Beyond telecommunications, the two groups are also evaluating the potential extension of their partnership into the submarine energy cables sector, signaling further opportunities for collaboration.
Once completed, the acquisition of Xtera is expected to significantly reshape the competitive landscape of submarine telecommunications, creating a vertically integrated player capable of delivering end-to-end, secure, and technologically advanced underwater connectivity solutions at a global scale.
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