- A Prysmian-led joint venture with Fincantieri has agreed to acquire Xtera, a specialist in turnkey submarine telecom systems.
- The transaction positions Prysmian as a global player in submarine telecom, complementing its leadership in submarine energy solutions.
- The partnership aims to deliver a one-stop shop for submarine telecom solutions, with a strong focus on security.
- The acquisition is valued at $65 million, with completion expected in the first quarter of 2026, subject to regulatory approvals.
According to a corporate announcement dated December 29, 2025, a Prysmian-led joint venture with Fincantieri has signed an agreement to acquire Xtera Topco Limited, a UK- and US-based leader in turnkey submarine telecom systems, marking a strategic expansion of capabilities in the global subsea communications market.
Transaction Structure and Strategic Rationale
Xtera will be acquired through a joint venture between Prysmian, which will hold an 80% stake, and Fincantieri, with a 20% stake. The acquisition will be completed from an affiliate of H.I.G. Capital, LLC. The transaction is intended to position Prysmian as a competitive global player in submarine telecom solutions, building on its established leadership in submarine energy cables. For Fincantieri, the joint venture reinforces its role as a leading integrator of advanced subsea systems and supports its focus on unmanned and security solutions in the underwater domain.
Market Drivers and Growth Outlook
Submarine telecom cables are described as strategic assets with long-term growth prospects, supported by rising demand from telecom operators and the expansion of data centers and hyperscalers driven by the adoption of AI. These trends are expected to increase requirements for both regional and long-haul submarine connections.Security is identified as a central element of the combined offering, with Prysmian’s monitoring assets, installation expertise, and cable production capabilities being combined with Fincantieri’s underwater systems and security-focused solutions.
Executive Commentary
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.”
Pierroberto Folgiero, CEO and Managing Director at Fincantieri, commented: “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.”
Keith Henderson, CEO at Xtera, added: “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.”
Xtera Profile
Headquartered in London, Xtera is one of five companies capable of delivering subsea telecom networks on a global scale. The company specialises in regional and long-haul submarine telecom projects using proprietary technology. Xtera reports approximately €130 million in revenues, employs around 60 people, and operates R&D facilities in the UK and Texas, USA.
One-Stop Shop for Submarine Cable Solutions
The acquisition is expected to complement Prysmian’s submarine telecom production at its Nordenham plant in Germany, its in-house acoustic and temperature monitoring solutions, and its fleet of cable installation vessels. The partnership with Fincantieri builds on an existing relationship in cable installation vessels and extends into new security-focused underwater services, including guard vessels and drones.
