#H.I.G. Capital #London #United Kingdom #Prysmian #Xtera Limited

H.I.G. Capital's Strategic Move: The Sale of Xtera

In a significant development in the telecommunications industry, H.I.G. Capital, a leading global alternative investment firm managing $72 billion in capital, has entered into a binding agreement to sell its portfolio company, Xtera Limited, to a joint venture co-led by Prysmian S.p.A. and Fincantieri S.p.A. This transaction, announced on December 30, 2025, is subject to regulatory approvals and is expected to finalize in the first quarter of 2026.

About Xtera

Founded in 2017 following H.I.G.'s acquisition of the majority of Xtera Communications, Inc., Xtera is a prominent provider of underwater telecommunications networks headquartered in London, UK. The company has established a reputation for its high-quality, innovative solutions that address the growing global demand for bandwidth and connectivity. As data traffic surges, particularly in data centers, companies like Xtera play a crucial role in enabling enhanced global connectivity and redundancy.

Under H.I.G.'s stewardship, Xtera has completed numerous key projects, most notably the record-capacity NO-UK submarine cable system. Another ambitious project under development is the TAM-1 system, which will stretch over 7,000 km, linking Florida with Central America and the Caribbean, expected to be completed by 2026.

Keith Henderson, CEO of Xtera, expressed gratitude for H.I.G.'s pivotal role in the company's growth, noting that their partnership has revitalized Xtera as a formidable player in the submarine telecommunications sector. He anticipates continued success under the new ownership of Prysmian and Fincantieri, which promises to expand the services offered throughout the telecommunications value chain.

H.I.G. Capital's Role

John Harper, General Partner of H.I.G. Capital in London, commented on the transformative journey of Xtera, emphasizing their pride in supporting the company’s evolution into a top-tier provider in a rapidly growing market. With strategic initiatives and robust research and development investments during H.I.G.'s ownership, Xtera has seen substantial growth. Harper looks forward to observing the company's ongoing success under its new owners.

H.I.G. Capital itself is an influential player in the investment landscape, known for providing debt and equity capital to mid-market businesses. Their portfolio includes over 100 companies globally, generating collective revenues exceeding $53 billion—a testament to their significant impact across various sectors.

The Path Ahead for Xtera

Xtera stands out for its innovative approach to underwater telecommunications, offering both repeated and non-repeated systems utilizing high-performance optical amplifiers. This capability not only enhances traffic routing in urban settings but also fosters flexible partnerships within the industry to deliver optimal solutions. As Xtera prepares for this new chapter under Prysmian and Fincantieri, industry observers are keenly watching how the shift in ownership will influence growth and service diversification.

In conclusion, this strategic sale not only illustrates H.I.G. Capital's commitment to advancing Xtera’s capabilities but also highlights the ongoing consolidation and evolution within the global telecommunications market, setting the stage for future advancements and opportunities in connectivity.