H.I.G. Capital Enters Agreement for Sale of Xtera to Major Joint Venture

H.I.G. Capital's Strategic Move in the Telecommunications Market

On December 30, 2025, H.I.G. Capital, a global alternative investment firm managing $72 billion in assets, announced that one of its subsidiaries has signed a binding agreement to sell Xtera Limited. The sale is part of a joint venture involving Prysmian S.p.A. and Fincantieri S.p.A., and the completion of this transaction is expected by the first quarter of 2026, pending regulatory approval.

Background of Xtera

Xtera, headquartered in London, is a leading provider of undersea telecommunications networks. The company operates in a rapidly growing market fueled by increasing global demand for bandwidth, enhanced connectivity, and the need for redundancy in data center traffic. Recognized for its innovation, Xtera has established a solid reputation, delivering turnkey systems to high-profile clients, including the U.S. Department of Defense and several blue-chip telecom operators.

H.I.G. Capital acquired Xtera in 2017 by taking over nearly all assets of Xtera Communications, Inc. Since then, the company has successfully executed multiple turnkey projects. Among its significant achievements is the NO-UK submarine cable system, known for setting record capacity levels. Additionally, Xtera is on track to complete the TAM-1 project in 2026, which will span over 7,000 km and connect Florida with Central America and the Caribbean.

Comments from Leadership

Keith Henderson, CEO of Xtera, expressed appreciation for H.I.G.'s partnership since the company's inception. In his statement, he highlighted that H.I.G.'s investment has enabled Xtera to become a formidable player in the undersea telecom industry, experiencing significant growth across all operations. He mentioned looking forward to continuing this successful momentum under the new ownership of Prysmian and Fincantieri to deliver greater value across the value chain.

In a statement, John Harper, Managing Director at H.I.G. in London, conveyed his pride in supporting the Xtera team during their remarkable evolution in the competitive undersea telecom market. He noted successful collaborations with Keith and his team on various strategic initiatives and R&D investments, which led to substantial growth during H.I.G.'s ownership. Harper anticipates continued success for Xtera under its new owners.

H.I.G. Capital's Investment Philosophy

H.I.G. Capital specializes in providing both debt and equity capital to middle-market companies, utilizing a flexible and operationally focused value-add approach. Since its founding in 1993, H.I.G. has invested in over 400 companies across various sectors. Its current portfolio includes more than 100 businesses collectively generating over $53 billion in revenue.

For further information regarding Xtera, interested parties are directed to visit xtera.com. For more details about H.I.G. Capital's investment strategies and portfolio, please check hig.com.